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+ VENTURE GLOSSARY
The Venture Capital, Startup & Innovation Dictionary
Welcome to the Siberian Ventures Glossary.
Siberian Ventures is a global venture investment and business development firm focused on identifying, supporting, and accelerating high-potential companies, technologies, and founders across emerging and established industries.
This glossary was created to help entrepreneurs, investors, operators, founders, and business leaders better understand the terminology behind venture capital, startup ecosystems, innovation, private markets, growth investing, and company building.
Whether you're raising capital, launching a startup, evaluating investment opportunities, or exploring the venture ecosystem, this resource provides a practical guide to the language of modern entrepreneurship and venture investing.
A
Accelerator
A structured program that helps early-stage startups grow through mentorship, funding, education, and investor introductions.
Accredited Investor
An individual or entity that meets specific financial requirements allowing participation in certain private investment opportunities.
Angel Investor
An individual who invests personal capital into early-stage startups in exchange for ownership equity.
Asset Allocation
The process of distributing investments across different asset classes to manage risk and maximize returns.
Acquisition
The purchase of one company by another company.
B
Bootstrapping
Building a company using personal resources and internally generated revenue rather than external funding.
Burn Multiple
A metric that measures how efficiently a startup converts spending into revenue growth.
Burn Rate
The amount of capital a company spends during a given period.
Business Model
The framework through which a company generates revenue and creates value.
C
Cap Table
Short for capitalization table, a document showing ownership percentages among founders, employees, and investors.
Capital Call
A request from an investment firm to investors for committed funds.
Carry (Carried Interest)
The share of profits earned by venture capital fund managers after returning capital to investors.
Cash Flow
The movement of money into and out of a business.
Convertible Note
A financing instrument that begins as debt and converts into equity at a future financing event.
Customer Acquisition Cost (CAC)
The cost associated with acquiring a new customer.
Customer Lifetime Value (CLV)
The projected revenue generated by a customer over the duration of their relationship with a company.
D
Deal Flow
The stream of investment opportunities reviewed by investors or venture firms.
Dilution
The reduction in ownership percentage resulting from the issuance of additional shares.
Direct Investment
Capital invested directly into a company rather than through a fund.
Due Diligence
The investigation and evaluation of a company before investment.
E
Early-Stage Company
A startup that is developing products, acquiring customers, and establishing market traction.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization; a common profitability metric.
Equity
Ownership in a company.
Exit
The event through which founders and investors realize financial returns.
F
Family Office
A private organization responsible for managing wealth and investments on behalf of affluent families.
Follow-On Investment
Additional capital invested into an existing portfolio company.
Founder
An individual responsible for creating and launching a company.
Founder-First Investing
An investment philosophy centered around supporting exceptional founders, long-term vision, and sustainable company building.
Fundraising
The process of securing capital from investors.
G
General Partner (GP)
The entity responsible for managing a venture capital fund.
Go-To-Market (GTM) Strategy
A plan for bringing a product or service to market.
Global Opportunity Investing
The practice of identifying high-potential businesses and founders regardless of geographic location.
Growth Ecosystem
The interconnected resources, expertise, capital, technology, and relationships that help portfolio companies scale.
Growth Equity
Investment capital provided to established companies seeking accelerated expansion.
H
Holding Company
An organization that owns interests in multiple companies.
Hypergrowth
A period of exceptionally rapid business expansion.
I
Incubator
An organization that helps startups develop ideas and businesses through mentorship and support.
Initial Public Offering (IPO)
The process by which a private company becomes publicly traded.
Innovation Capital
Capital deployed into businesses, technologies, and industries capable of driving meaningful innovation and economic growth.
Intellectual Property (IP)
Protected creations including patents, trademarks, copyrights, and proprietary technologies.
Investment Thesis
A framework explaining why a particular investment opportunity is attractive.
J
Joint Venture
A business arrangement where organizations collaborate to pursue a shared opportunity.
K
Key Performance Indicator (KPI)
A measurable metric used to evaluate performance.
L
Lead Investor
The primary investor in a funding round.
Limited Partner (LP)
An investor who contributes capital to a venture fund but does not manage operations.
Liquidity Event
An occurrence that allows investors or founders to convert ownership into cash.
Long-Term Value Creation
A philosophy focused on building durable businesses capable of sustainable growth and lasting impact.
M
Market Opportunity
The potential demand for a product, service, or solution.
Mergers & Acquisitions (M&A)
The consolidation of companies through acquisitions, mergers, or strategic transactions.
Minimum Viable Product (MVP)
The simplest version of a product used to validate market demand.
Multiple
A valuation metric comparing investment value to revenue, earnings, or other financial benchmarks.
N
Network Effects
A phenomenon where a product becomes more valuable as more users join.
Net Asset Value (NAV)
The total value of assets minus liabilities.
O
Opportunity Assessment
The process of evaluating the attractiveness of a business opportunity.
Ownership Stake
The percentage of a company owned by an individual or entity.
P
Portfolio Company
A business in which an investment firm holds an ownership interest.
Portfolio Support Services
The strategic, operational, marketing, technology, hiring, and growth assistance provided to portfolio companies.
Post-Money Valuation
The value of a company after an investment round closes.
Pre-Money Valuation
The value of a company before a funding round.
Product-Market Fit
The stage where a product effectively satisfies market demand.
Q
Qualified Deal Flow
Investment opportunities that meet predefined investment criteria.
R
Return on Investment (ROI)
A measure of investment profitability.
Revenue Multiple
A valuation metric comparing enterprise value to annual revenue.
Risk Capital
Capital invested in opportunities with uncertain outcomes but significant upside potential.
S
SAFE (Simple Agreement for Future Equity)
A startup financing instrument allowing investors to receive future equity.
Scalability
The ability of a business to grow efficiently without proportional increases in cost.
Seed Capital
Early-stage funding used to launch and develop a startup.
Series A
The first significant institutional venture capital financing round.
Strategic Investor
An investor providing both capital and strategic value.
Strategic Venture Capital
Investment capital combined with operational expertise, business development support, partnerships, and growth resources.
Syndicate
A group of investors participating together in a funding round.
T
Term Sheet
A document outlining the key terms of an investment agreement.
Total Addressable Market (TAM)
The maximum revenue opportunity available within a market.
Traction
Evidence demonstrating customer demand and business growth.
U
Unicorn
A privately held startup valued at more than $1 billion.
Unit Economics
The financial performance of an individual customer, product, or transaction.
V
Valuation
The estimated worth of a company.
Value Creation Platform
The systems, networks, and strategic capabilities used to accelerate portfolio growth beyond financial investment alone.
Venture Capital
Investment capital provided to high-growth startups and emerging businesses.
Venture Debt
Debt financing provided to venture-backed companies.
Venture Partnership Model
An investment approach emphasizing collaboration, transparency, and long-term relationships with founders.
Venture Partnership Network
The global network of founders, operators, advisors, investors, and industry leaders connected through Siberian Ventures.
Venture Studio
An organization that creates and launches startups internally.
W
Working Capital
Funds used to manage day-to-day business operations.
X
X-Factor
A unique advantage or characteristic that significantly differentiates a company.
Y
Yield
The income generated from an investment.
Z
Zombie Startup
A company that continues operating without meaningful growth, profitability, or exit potential.
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