Top 10 Most Misunderstood Entrepreneurial Start-up Words

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:

1. Angel Investors – Investors getting startup from self-funded stage to obtaining venture capital.
2. Bridge Loan – a short-term way to obtain a loan that meets immediate needs for capital.
3. IPO – Initial Public Offering – when a private company offers stock and becomes a public company.
4. Limit Liability Company or LLC – legal form of a company providing limited liability.
5. Me-Too Product – when competitors’ products are basically indistinguishable for yours.
6. Portfolio – Holdings of a private investor or institution.
7. Seed-Funded – investment to start a business until the business can fund itself.
8. Start-up – Differing opinions on this . . . Check out the article:  How do you define a startup?
9. Valuation – Company’s market worth.
10. Venture Capital – Money or capital provided to start a business.  Those providing money may be referred to as Venture Capitalists.

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