Word of the Day

Learn your ABCs of the private market and startup ecosystem.

Angel Investor

An angel investor is a high net worth individual who provides financial backing for small startups or entrepreneurs in exchange for equity in their business.
For example: Anupam Mittal invested approximately Rs 1 crore in Ola Cabs in April 2011.


Acquihire refers to purchase of a company mainly to recruit its key employees and team members. An acquihire is different from a merger and acquisition.
For example: Leading edtech company BYJU’S acqui-hired reading platform Epic! For $500 million in July 2021.


Alternative Investment Fund (AIF) is a privately pooled investment corpus where private investors can contribute to collectively invest in businesses according to a mutually agreed plan. 

An example of this is the LetsVenture Angel Investment Fund, which is a SEBI-registered Category 1 Fund, incorporated in October 2018.

Burn Rate

The monthly rate at which a new company spends its initial capital to finance overheads before generating positive cash flow. A company can reduce burn rate by generating revenue from business and reducing costs.

For example, a company with the monthly burn rate of Rs 20 lakh would mean it is spending Rs 20 lakh every month.

Bridge Finance

Bridge financing is a temporary financing option to cover a company's short term costs till a long- term financing is secured. Hence, a bridge financing "bridges" the gap. They can be in the form of debt or equity. 

For example, a SaaS company facing a cash crunch may seek $10 million in funding till a new product is developed and launched.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost is a cost incurred to acquire new customers. This includes the cost of producing, storing and shipping the products. 

For example, a Direct-to-Consumer (D2C) brand may spend Rs 500,000 on a marketing campaign to acquire 5,000 new customers.

The Cap Table

The Cap Table or the capitalization table is an analysis of a company's percentages of ownership by founders, investors and other owners. A breakdown of a company’s shareholder equity, it is most commonly used by startups and early stage businesses.


A predetermined period of time when stocks gradually vest. A 1-year cliff at startups that award ESOPS/stocks to employees means that if an employee leaves within a year then they don't get any stocks/ESOPS in that startup.

Deal Flow 

Deal flow refers to the rate at which investment opportunities come to a particular investor or investment firm. 

Discounted Cash Flow

Discounted Cash Flow is a startup valuation method that estimates the value of a company based on its expected cash flow in the future.

Learn by LetsVenture Follow me on Graphy
Watch my streams on Graphy App
Learn by LetsVenture 2023 Privacy policy Terms of use Contact us Refund policy