Drive-by Deal
A drive-by deal refers to a venture investment made quickly with minimal due diligence or ongoing involvement, where the investor provides capital but limited strategic support or board engagement.
From emerging regulation to deal mechanics, we write about the questions founders and investors actually ask — practical analysis you can put to work.
A drive-by deal refers to a venture investment made quickly with minimal due diligence or ongoing involvement, where the investor provides capital but limited strategic support or board engagement.
The double bottom line is a business philosophy that measures company performance on both financial returns and social/environmental impact, used by impact investors and social enterprises.
Drip feeding in investment refers to the strategy of releasing capital to a company or investment in small, incremental amounts tied to milestone achievements, rather than all at once.
In venture capital, “double dipping” refers to participating preferred stockholders who receive both their liquidation preference AND then participate in the remaining proceeds as if they had converted to common stock.
A dividend is a distribution of a portion of a company’s earnings to its shareholders, paid in cash or additional shares, representing a return on investment for shareholders who hold dividend-paying stocks.
De jure is a Latin term meaning “by right” or “by law,” describing something that is legally recognized or established, as opposed to de facto (existing in practice but without formal legal status).
De facto is a Latin term meaning “in fact” or “in practice,” describing a situation that exists in reality without formal legal recognition, as opposed to de jure (legally recognized).
The conversion ratio specifies how many common shares a convertible security (bond, preferred stock, note) can be exchanged for, determining the equity stake the holder receives upon conversion.
Collateral is an asset pledged by a borrower to a lender to secure a loan, which the lender may seize if the borrower defaults on the debt obligation.
Co-investment refers to when a limited partner invests directly alongside a fund in a specific deal, typically on more favorable terms (reduced or no fees/carry), providing additional capital for larger transactions.