Learn your ABCs of the private market and startup ecosystem.
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.
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.