Some of the most interesting companies right now are considering going IPO? If you are confused about what that means, you are not alone. I find that a lot of my students would enjoy reading articles about new start-up companies but avoid them due to the writer’s use of confusing terminology. Having taught entrepreneurship for many years, I have come up with a list of some of the most misunderstood words that have to deal with entrepreneurs and start-up companies to make things a little easier to understand. Click on the links provided below for more information about the definition of the term:
- Angel Investors – Investors getting startup from self-funded stage to obtaining venture capital.
- Bridge Loan – a short-term way to obtain a loan that meets immediate needs for capital.
- IPO – Initial Public Offering – when a private company offers stock and becomes a public company.
- Limit Liability Company or LLC – legal form of a company providing limited liability.
- Me-Too Product – when competitors’ products are basically indistinguishable for yours.
- Portfolio – Holdings of a private investor or institution.
- Seed-Funded – investment to start a business until the business can fund itself.
- Start-up – Differing opinions on this . . . Check out the article: How do you define a startup?
- Valuation – Company’s market worth.
- Venture Capital – Money or capital provided to start a business. Those providing money may be referred to as Venture Capitalists.