From emerging regulation to deal mechanics, we write about the questions founders and investors actually ask — practical analysis you can put to work.
Net income (also called the bottom line, net profit or net earnings) is what remains of revenue after all expenses, interest and taxes are deducted. It is the final line of the income statement under IFRS (IAS 1) and US GAAP (ASC 220) and flows into retained earnings on the balance sheet.
The management fee is the annual fee paid by a venture-capital or private-equity fund’s Limited Partners to the General Partner for managing the fund — covering the GP’s operating costs (salaries, office, travel, due diligence, professional services) and the basic compensation of the investment t…
The J-curve in private equity describes the typical return pattern of a fund: initial negative returns as capital is deployed and fees paid, followed by a rising curve as investments mature and exits are achieved.
In business, a grant is non-dilutive funding awarded by government agencies, foundations, or organizations that does not require repayment or equity, typically tied to specific purposes like research, innovation, or social impact.
Fund size refers to the total amount of capital committed by limited partners to a venture capital or private equity fund, which determines the fund’s investment strategy, check sizes, and portfolio construction.
An executive summary is a brief, comprehensive overview of a business plan, pitch deck, or report that highlights the key points, allowing busy executives or investors to quickly understand the main value proposition.
An equity kicker is a warrant or option attached to a debt instrument that gives the lender the right to acquire an equity stake in the borrower’s company, sweetening the deal for lenders who accept lower interest rates.
Economies of scale refer to the cost advantages a company gains as it increases production, where the cost per unit decreases as the volume of output increases, improving profitability at scale.
An early exit refers to an investor or founder liquidating their position in a company sooner than anticipated, often at a lower valuation than expected, due to changing circumstances, opportunity, or necessity.
Dry powder refers to the uncommitted capital that a private equity or venture capital firm has available to invest — raised but not yet deployed — representing firepower for future deals.
