Glossary

Portfolio

In finance, a portfolio is a collection of investment assets held by an individual, a financial institution, or an investment company. It may include stocks, bonds, currencies, cash equivalents, and commodities. Portfolio composition is typically balanced according to the risk tolerance, investment goals, and time frame of the investor.

Promissory Note

A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date.

Pre-Money Valuation

Pre-Money Valuation refers to the valuation of a company not including external funding or the latest round of funding. It is used by investors to determine the value of their investments.

Perks

In the context of investments, perks refer to additional benefits that are given to investors, often during early-stage funding rounds. These can include early access to products, discounts, or special recognition within the investor community.

Post-Raise

Post-Raise refers to the activities and strategies that occur after a capital raising event has concluded. This phase includes the deployment of raised funds, ongoing investor relations, and compliance with post-offering regulatory requirements.

Pre-Raised

Pre-Raised often refers to the stage before initiating a fundraising or capital formation campaign. During this phase, companies prepare by evaluating their financial needs, setting goals, and ensuring compliance with regulatory frameworks before actively seeking capital.

Private Placement

Private placement is a method of raising capital through the sale of securities to a relatively small number of select investors as part of an offering exempt from registration with the regulatory authorities. This approach is often used by startups and small to medium-sized enterprises (SMEs) who wish to raise funds directly from private investors without the public scrutiny and regulatory requirements of a public offering.

Projections

In finance, projections refer to forward-looking estimates of a company’s financial performance, such as revenue, profits, and cash flow, based on historical data and assumptions about the future. Projections are vital for planning and investment decisions, providing a forecast of financial health and operational success.

Pro-Forma

Pro-forma financial statements are hypothetical financial models that forecast a company’s financial performance. They are used to present a clear picture of the financial outcomes by excluding irregular transactions or non-recurring events. Pro-forma figures are often used to help investors and management assess the core performance of a business.

Post-Money Valuation

Post-Money Valuation refers to the value of a company immediately after the most recent round of funding. This includes the value of the money just received from investors.

PPM (Private Placement Memorandum)

A Private Placement Memorandum is a legal document provided to prospective investors when selling stock or another security in a business. It discloses all the essential details about the business and the investment, including the terms of the investment, the shares offered, potential risks, and background information on the management team.

Private Capital Markets

Private Capital Markets refer to the part of the financial market involving the investment of capital in private companies. This market enables these companies to raise funds without needing to comply with the full range of securities regulations associated with public markets.

Private Company

A private company is a business entity held under private ownership with shares that are not traded publicly on stock exchanges. Such companies may raise capital through private placements or venture capital rather than through public offerings.