The strategic act of one company taking over or gaining control over another company, by purchasing most or all its shares. An entity may acquire another for a variety of reasons including but not limited to as a growth strategy, a new way to enter a foreign market, and a way to decrease competition.
High-net-worth individuals that provide venture capital to seed or early-stage companies, also known as private investors, seed investors, or angel funder. Angel investors can usually add value through their contacts and expertise.
An anti-dilution provision will protect an investor’s ownership percentage from being diluted (i.e., reduced) in subsequent rounds of fundraising where the price per share is lower than the previous round of financing. There are various types of anti-dilution provisions, including the weighted average anti-dilution protection (broad-based or narrow-based) and full ratchet anti-dilution protection.
assets under management (“aum”)
Assets Under Management represents the total value of assets managed by a venture capital firm, including the value of the portfolio investments and the value of capital available for future investments.