In the land of startups, scale-ups and Venture Capitalism, jargon and abbreviations are absolutely everywhere. Use this startup glossary of terms to search 101+ definitions every startup founder should know.
GLOSSARY![]()
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Data room
A data room (also known as a virtual data room) is an online repository of information that is used for the storing and distribution of documents. Generally used to house documents relating to due diligence in funding rounds.
Debt Capital
Debt capital is the capital/finance that a business raises by taking out a loan or other financial security (in this context, debt capital can be an alternative to equity capital).
Deep Learning
A type of machine learning using neural networks with multiple layers for complex tasks.
Demand Generation
Marketing activities designed to create awareness and interest in a product or service.
Dilution
Dilution occurs when a startup issues new shares that result in a decrease in existing shareholders' ownership percentage of that company. When the number of shares outstanding increases, such as during a funding round, each existing shareholder owns a smaller, or diluted, percentage of the company, making each share less valuable.
Down Round
A fundraising round in which the startup is valued at a lower value per share than previous rounds (i.e. the valuation has gone down)
Drag-Along Rights / Drag-Along Clause
The right of the owners of a specified percentage of the shares of the startup to require other shareholders to sell their shares or to approve sale of the company. This prevents one group of shareholders from blocking sale of the company.
