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The Book of Jargon®Emerging Companies

An interactive glossary of acronyms, slang, and industry terminology.

Book of Jargon® – Emerging Companies is one in a series of practice area and industry-specific glossaries published by Latham & Watkins.

The definitions provide an introduction to each term and may raise complex legal issues on which specific legal advice is required. The terms are also subject to change as applicable laws and customary practice evolve.

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The information contained herein is not legal advice and should not be construed as such.

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Pre-Seed Financing,Preemptive Rights,Preferred Director,Preferred Stock,Preferred Stock Financing,Preferred Stockholder,Pre-Money Valuation,Pre-Payment,Private Company,Private Equity,Private IPO,Private Placement,Private Placement Memorandum,Private Securities,Profit,Proprietary Information and Invention Assignment Agreement,Pro Rata Amount,Prospectus,Protective Provisions,Public Company,Purchaser,Put Option,QIB,Qualified Financing,Qualified Institutional Buyer (QIB),Qualified Small Business Stock (QSBS),Ratification,Recapitalization,Redeemable Preferred,Redemption,Redemption Price,Redemption Rights,Registered Public Offering,Registration Rights or Reg Rights,Registration Statement,Regulation A+,Regulation Crowdfunding,Regulation D or Reg D,Regulation D Offering,Regulation S or Reg S,Reincorporation,Reorganization,Representations and Warranties,Reporting Company,Repurchase Provisions,Restricted Securities,Restricted Stock,Restricted Stock Purchase Agreement (RSPA),Return on Investment (ROI),Reverse Subsidiary Merger,Right of First Refusal (ROFR),Rights Offering,Road Show,ROFR,ROFR Agreement,RSPA,Rule 10b-5,Rule 144,Rule 144A,Rule 144A Financings,Rule 405,Rule 501,Rule 504,Rule 505,Rule 506,S Corporation,SAFE Investment,Secondary Market,Secondary Sale,Secretary’s Certificate,Section 5,Section 4(a)(2),Section 409A,Securities,Securities Act,Securities Exchange Act,SEC,Seed Capital,Seed Financing,Seller,Senior Debt,Senior Securities,Service Mark,Shares,Shell Corporation,Single Trigger Acceleration,Small Business Administration (SBA),Small Business Innovation Research (SBIR),Small Business Investment Company (SBIC),Sole Incorporator,Special Purpose Entity,Spin Off,Startup,Statutory Voting,Stock,Stock Certificate,Stock Purchase Agreement,Stockholder,Stock Split,Straight-Line Vesting,Strategic Acquisition,Strategic Investor,Subordinated Debt,Subscription Agreement,Subsidiary,Sweat Equity,Tag Along Rights,Target Company,Tender Offer,Term Sheet,Trademark,Trade Secret,Tranche,Transaction Documents,Transfer Restrictions,Treasury Stock,Triangular Merger,Uncertificated Shares,Underwriters,Underwriting Agreement,Unicorn,Unicorpse,Valuation,Valuation Cap,VC,VCOC,Venture Capital Financing or VC Financing,Venture Capital,Venture Capitalist,Venture Capital Fund,Venture Capital Operating Company,Venture Debt,Vesting,Vesting Commencement Date,Vesting Schedule,Voting Agreement,Voting Right,Warrant,Warrant Coverage,Waterfall,Weighted Average Anti-Dilution Protection,Written Consent,Written Consent of Directors,Written Consent of Stockholders,Board,Certificate of Incorporation,Schedule of Exceptions,Freemium,Launch,Pivot,Runway,Scalable,Traction,[fill-in-the-blank]-tech,409A Valuation,83(b) Election,Accelerator,Accredited Investor,Accredited Investor Questionnaire,Accrued Interest,Accruing Dividend,Acquirer,Acquisition,Acquisition Agreement,Advisor,Advisory Board,Advisor Agreement,Affiliate,Affirmative Covenants,Allocation,Angel Investor,Angel Financing,Anti-Dilution Adjustment,Anti-Dilution Provisions,Assignment,Bad Actor,Bad Actor Questionnaire,Bad Actor Representations,Balance Sheet,Bankruptcy,Bankruptcy Code,Blue Sky Laws,Board Meetings,Board Minutes,Board Observer,Board Observer Rights,Board of Directors,Book Entry,Book Value,Bootstrapping,Bridge Financing,Broker-Dealer,Burn Rate,Business Combination,Business Judgment Rule,Business Plan,Buyer,Bylaws,C Corporation,Cap Table,Capital Call,Capital Gains,Capital Markets,Capitalization,Cash Flow Statement,Cash Position,Centaur,CEO,Certificate of Good Standing,CFO,Change of Control,Chapter 11,Charter,Chief Executive Officer (CEO),Chief Financial Officer (CFO),Cliff Vesting,Closing,Closing Certificates,Closing Checklist,Closing Conditions,Closing Date,Common Director,Common Stock,Common Stockholders,Condition Precedent,Confidentiality Agreement,Consultant,Consulting Agreement,Conversion Discount,Conversion Price,Conversion Ratio,Conversion Rights,Convertible Debt Financing,Convertible Promissory Note,Convertible Security,Copyright,Co-Sale Rights,Counterparts,Covenant,Crowdfunding,Cumulative Dividend,Cumulative Voting,Data Room,Deal Flow,Deal Structure,Debt,Decicorn,Deemed Liquidation Event,Delaware General Corporation Law (DGCL),Demand Registration Rights,DGCL,Dilution,Anti-Dilution Protection,Director,Disclosure Schedule,Disinterested Director,Distribution,Dividend,Double Trigger Acceleration,Down Round,Drag Along Rights,Due Diligence Defense,Due Diligence,Due Diligence Request List,Duty of Candor,Duty of Care,Duty of Loyalty,D&O Insurance,Early Stage,Earnout Provisions,EGC,Elevator Pitch,Emerging Growth Company (EGC),Employee,Employee Stock Option Plan (ESOP),Employer Tax Identification Number (EIN),Employment Agreement,Employee Retirement Income Security Act of 1974 (ERISA),Enterprise Value,Equity,Equity Financing,Equity Incentive Plan,Equity Value,Exchange Act,Exercise Price,Exit,Exit Strategy,Expertized Parts,Fair Market Value,FCPA,Fear of Missing Out (FOMO),Fiduciary,Fiduciary Duties,Final Closing,Financial Statements,Financing,Financing Round,Finder,Follow-on Offering,FOMO,Foreign Qualification,Forfeiture Provisions,Form D,Form S-1,Founder,Founder Representations,Founders' Shares,Friends and Family Round,Full Ratchet Anti-Dilution Protection,Fully Diluted,Fully Diluted Earnings Per Share,GAAP,General Partner,Good Faith,Good Standing,Governing Law,Growth Equity Investment,Holding Company,Holding Period,Incentive Stock Option (ISO),Income Statement,Incorporation,Incubator,Inculator,Indemnification Agreement,Information Rights,Initial Close,Initial Public Offering (IPO),Inside Round,Inspection Rights,Institutional Investor,Intellectual Property,Interest,Internal Rate of Return (IRR),Internal Revenue Code (IRC),Investment Letter,Investment Representations,Investor,Investor Rights Agreement,IPO,IRC,Issue Price,Issued Shares,Issuer,JOBS Act,Key Employees,Key Man Insurance,Knowledge Qualifier,Late Stage,Lead Investor,Legends,Leverage,Limited Liability Company,Limited Liability Limited Partnership,Limited Liability Partnership (LLP),Limited Partner (LP),Limited Partnership,Liquidation,Liquidation Amount,Liquidation Preference,Liquidity,Loan and Security Agreement,Lock-Up,Lock-Up Agreement,LP,MAC,MAE,Maintenance Covenants,Major Investor,Management Carve-Out Plan,Management Rights Letter,Management Team,Mandatory Conversion,Market Standoff Agreement,Massachusetts Security Corporation,Material Adverse Change (MAC),Material Adverse Effect (MAE),Materiality Qualifier,Maturity Date,Merger,Merger Agreement,Middle Market,Milestones,Milestone Closing,Minimum Viable Product,NASDAQ,NDA,Negative Covenants,New York Stock Exchange (NYSE),No General Solicitation,No Shop, No Solicitation Clauses,Non-Accredited Investor,Non-Compete Clause,Non-Cumulative Dividend,Non-Disclosure Agreement,Non-Participating Preferred,Non-Qualified Stock Option (NSO),Non-Solicitation Clause,Note Purchase Agreement,NYSE,Observer Rights,Offer Letter,Officers,Officers Certificate,Opinion Letter,Option,Option Agreement,Option Pool,Optional Conversion,Organizational Documents or Org Docs,Original Issue Price,Outstanding Shares,Oversubscription Privilege,Par Value,Pari Passu,Participating Preferred (with and without cap),Participation Rights,Partnership,Partnership Agreement,Patent,Pay to Play,Periodic Reports,Per Share Price,Piggyback Registration Rights,PIPE,Pitch,Placement Agent,Portfolio Company,Post-Money Valuation,Pre-Closing