A

• Accelerator – a program intended to mentor and accelerate the growth and success of a startup company.
• Accredited investor – as defined by federal securities laws, a person who is permitted to invest in startups and other high-risk private company securities based on the net worth and income level of the potential investor.
• Acquisition – transaction between two companies where one is buying the other.
• Adverse change redemption – a type of redemption right whereby a shareholder gets the right to redeem her shares if something adverse happens to the company.
• Adviser – someone who advises startup companies. This person is often paid some sort of compensation for his efforts.
• Agency costs – the costs associated with an agency/principal relationship that the principal incurs either directly or indirectly.
• Analyst – a very junior person at a venture capital firm, often a recent college graduate.
• Angel investor – an individual who provides capital to a startup company. This person is usually independently wealthy and invests his own money in the company.
• Antidilution – a term that provides price protection for investors. This is accomplished by effectively repricing an investor’s shares to a lower price per share in the event that the company completes financing at a lower valuation than a previous financing round.
• As-converted basis – looking at the equity base of the company assuming that all preferred stock has been converted to common.
• Associate – a person at a venture capital firm who is involved in deal analysis and management. The seniority of this position varies by firm, but generally, associates need a partner to support their activities.
• At-will employee – an employee who does not have an employment agreement and can be terminated by the company for any reason.

B

• Barter element – the price at which a stock option may be exercised.
• Basis of stock option – the price at which a stock option may be exercised.
• The best alternative to a negotiated agreement (BATNA) – is a backup plan if no agreement is reached between the two parties.
• Blended preferences – when all classes of preferred stock have equivalent payment rights in a liquidation.