Follow-on financing is additional investment made in a company by existing investors or new investors after the initial funding round, used to support continued growth or bridge to a major milestone.

A flat round is a fundraising round in which the company raises capital at the same valuation as its previous round, indicating stagnation in growth or market conditions.

A finder’s fee is compensation paid to an intermediary who facilitates a business transaction, such as connecting a startup with an investor, acquirer, or strategic partner.

A fairness opinion is a professional assessment by a financial advisor — typically an investment bank — stating whether the terms of a transaction (merger, acquisition, buyout) are fair from a financial perspective to shareholders.

A down round is a funding round in which a startup raises capital at a lower valuation than its previous round, diluting existing shareholders and often signaling challenges in the business.

Double trigger acceleration is a vesting provision where unvested equity accelerates only if two conditions are met: a company acquisition AND the employee’s termination or significant role change without cause.

Distressed debt refers to securities of companies that are in financial difficulty, near bankruptcy, or have defaulted on obligations, often traded at significant discounts as speculative investments.

The debt-to-equity ratio measures the proportion of a company’s financing that comes from debt relative to equity, indicating its financial leverage and risk profile.

Deal flow refers to the rate at which investment proposals and business opportunities are presented to potential investors, a critical metric for venture capital firms in identifying and evaluating investment prospects.

A debenture is a type of long-term debt instrument issued by corporations or governments that is backed only by the creditworthiness and reputation of the issuer, not by physical assets.