From emerging regulation to deal mechanics, we write about the questions founders and investors actually ask — practical analysis you can put to work.
The break-even point is the level of sales at which total revenue equals total costs — the volume or revenue figure where the business neither earns nor loses money. Beyond break-even, every incremental sale adds to operating profit; below it, the business is burning cash to operate.
The bottom line is the final figure on the income statement — net income (profit after all costs, interest and tax). The name reflects the literal position: the last line of the P&L. In everyday business language “the bottom line” is shorthand for the company’s overall financial result.
Bootstrapping is funding a company’s growth primarily from its own revenue and founders’ resources rather than external equity. Bootstrapped companies preserve founder ownership, optionality and control — at the cost of a slower growth trajectory than venture-funded peers.
Bookings is the total contract value a company signs with customers in a period — recurring and one-time, regardless of when the revenue is recognised. In SaaS it is the forward-looking commercial commitment, sitting upstream of both recurring revenue and GAAP revenue.
The balance sheet (statement of financial position under IFRS) is a snapshot of what a company owns, what it owes and what shareholders have invested at a single point in time. It rests on the accounting identity: Assets = Liabilities + Equity.
Accrued interest is interest that has been earned (on a receivable) or owed (on a payable) but not yet paid as of the reporting date. Under accrual basis accounting it is recognised in the period to which it relates, regardless of when cash settles.
Accrual basis accounting recognises revenue when it is earned and expenses when they are incurred — regardless of when cash actually moves.
Accounts receivable (AR) is the money customers owe a business for goods or services delivered on credit — recorded as a current asset on the balance sheet under IFRS 9 and US GAAP (ASC 326).
Accounts payable (AP) is the money a business owes suppliers for goods or services received on credit but not yet paid — recorded as a current liability on the balance sheet. AP is the mirror image of accounts receivable: one company’s AR is another’s AP.
An exploding offer is an investment term sheet or job offer that imposes a short acceptance deadline — typically 24-72 hours — designed to prevent the recipient from comparing alternatives or negotiating.
