What is Seniority (financial)?
Investorline In finance, seniority refers to the order of repayment in the event of bankruptcy. Senior debt must be repaid before subordinated debt is repaid. Bonds that have the same seniority…
What is Hybrid security?
Hybrid securities are a broad group of securities that combine the elements of the two broader groups of securities, debt and equity. Hybrid securities pay a predictable (fixed or floating)…
What is SWORD-financing?
SWORD-financing (Stock and Warrant Off-Balance Sheet Research & Development) is a special form of financing invented to help young biotech companies access capital to finance their R&D via establishing SPE…
Venture Capital Financing and its process
Venture capital financing is a type of financing by venture capitalist: the type of private equity capital is provided as seed funding to early-stage, high-potential, growth companies and more often…
What are Angel investor
An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible…
What is sweat equity
Sweat equity is a term that refers to a party’s contribution to a project in the form of effort — as opposed to financial equity, which is a contribution in…
Compensation for Venture Capitalist
Venture capitalists are compensated through a combination of management fees and carried interest (often referred to as a "two and 20" arrangement): Management fees – an annual payment made by…
Venture capital firms and funds
Venture capitalists A venture capitalist (also known as a VC) is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and…
What is Venture capital?
Venture capital (VC) is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in,…
What is Leveraged buyout?
Leveraged buyout, LBO or Buyout refers to a strategy of making equity investments as part of a transaction in which a company, business unit or business assets is acquired from…