e-Council Inc. Glossary:

Angel Investor

Angel investors are generally high-net-worth persons who provide private funds to early-stage, start-up and other businesses.

Early-Stage Business

An early stage business is similar to a start-up. However, when the term “early-stage” is used, it typically means that the business is in its earliest operational stage, but has little or no revenues yet.

Equity Capital / Equity Investment

Equity Capital, also known as Equity Investment is the provision of capital to a business in consideration of some level of equity, which is essentially ownership, of that business. Equity Investments are generally made by venture capital firms or angel investors. Equity investors seek to make investments in businesses that have a sound Exit Strategy which, if achieved, will provide the investors with a profitable way in which to recoup their investment.

Established Business

An established business has been in business and had established revenue(s) for a minimum of two (2) years.

Exit Strategy

For an equity investor, whether an Angel investor, a Venture Capital investor, or otherwise, the business in which they invest will need to have a feasible Exit Strategy that will enable the profits to be realized in order to “entice” the investment. Examples of Exit Strategies include (a) an IPO (Initial Public Offering) where the business “goes public” and sells its shares to the public by way of the open market; or (b) the sale of the business to a public or private entity, whether through a strategic partnership or otherwise.

Growth-Stage Businesses

A business that is typically at or near the break-even point in terms of the ratio of operating expenses to revenues, and is therefore considered to be poised to grow quickly.

Nonprofit / Not-for-profit 

A nonprofit or not-for-profit organization is an entity whose primary mission is oriented to accomplishing goals addressed to either private interests or public concerns, without concern for profits or the “bottom line”.  In the nonprofit/not-for-profit world, owners are able to draw salaries at fair market value, but cannot share in or have the profits distributed to them; instead, if profits are realized, they must be re-invested into the organization and its operations.

Seed Capital

Seed capital funds are the funds used for the initial investment in a new venture/ business/entity, which are often used to establish proof-of-concept, to conduct market research, or to fulfill initial product development requirements.

Seed-stage Business

A seed-stage business is one that is typically in the idea or concept phase. There may be one or more people committed to the business concept, but there is no revenue yet.  A seed stage business is one that is at the earliest point of the start-up phase.

Service Industry Business

Businesses in the Service Industry are primarily concerned with providing services to and for the benefit of consumer(s) and/or other business(es). This would include but not be limited to businesses that are involved in areas such as financial services; legal services; consulting services; public utilities; transportation; communications; and wholesale and retail sales. 

Start-Up Business

A start-up business is a business in the early stages of development, typically before it has an established revenue stream (As noted above, a seed stage business is the earliest point in the start-up phase).

Venture Capital

Venture Capital (VC) is capital that is most often invested in new or risky ventures such as seed capital businesses, start-up businesses, and/or early stage businesses.  VC firms generally have a pool of money that has been raised through the firm’s participants, that is made available to such businesses provided that the prospective recipient business has satisfied the venture capital firm’s requirements and due diligence standards. Generally speaking, VC firms provide equity capital investments in exchange for a share (ownership interest) of the business, based on  anticipated profit and Exit Strategies.  VC firms are often industry-specific, such that a VC in the technology industry would be unlikely to invest in a venture in the retail industry.

  “Even when you think you have your life all mapped out, thinks happen that shape your destiny in ways you might never have imagined.”

  - Deepak Chopra   personal growth author

“The 7 Secrets to Ensuring Business Success”

In today’s volatile and ever changing ... 

?

“Why a Nonprofit Might Be the Right Answer”

Few Small Business owners are...

?

“Strategic Partnerships - Essential for Today’s Business”

You must create ...

Disclaimer: The information provided in or through this site is virtual business consulting advice and is not legal advice, and it should not be relied upon as such. eCouncil Inc.com, Inc. is not a law firm nor a provider of legal services, and the services provided by eCouncil Inc.com Inc. are not and should not be considered to be a substitute for an attorney or law firm. eCouncil Inc.com Inc. is not permitted to offer or provide legal advice, but instead can provide virtual business consulting services which may included oversight of legal- and/or compliance-related matters at the specific direction and discretion of each client, provided that such services are not tantamount to the provision of legal advice or counsel. Neither eCouncil Inc.com Inc. nor its principals are licensed to practice law in FL.

This site powered by www.imaginethatcbs.com.