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Funding & Investment

Essential funding & investment terms every founder should know

12 terms

Angel Investor

High-net-worth individuals who provide capital to early-stage startups in exchange for equity ownership.

investment
funding
early-stage
+2

Burn Rate

The rate at which a company spends its cash reserves, typically measured monthly, crucial for understanding how long a startup can operate before needing additional funding.

finance
cash-flow
runway
+2

Business Development Bank

Business Development Bank of Canada (BDC) is a Crown corporation providing financing, advisory services, and capital to Canadian entrepreneurs.

canadian-banking
sme-financing
venture-capital
+3

Cap Table

A capitalization table showing the ownership percentages, equity dilution, and distribution of equity securities in a company across shareholders, investors, and employees.

equity
ownership
investment
+3

Cash Flow Planning

The process of forecasting, monitoring, and managing the timing of cash inflows and outflows to ensure adequate liquidity for business operations and growth.

finance
forecasting
runway
+3

Customer Acquisition Cost (CAC)

The total cost of acquiring a new customer, including marketing, sales, and associated expenses.

metrics
marketing
business
+1

Due Diligence

The comprehensive investigation process investors conduct before making investment decisions.

investment
fundraising
legal
+2

Equity

Ownership stake in a company, typically represented by shares that give holders voting rights and a claim on the company's assets and profits.

ownership
shares
investment
+2

IRAP Funding

Industrial Research Assistance Program providing funding and advisory services for Canadian small and medium-sized enterprises developing innovative technologies.

government-funding
innovation
sme-support
+3

SR&ED Tax Credit

Scientific Research and Experimental Development tax incentive program providing cash refunds and tax credits for R&D activities in Canada.

tax-credit
r-and-d
innovation
+3

Unit Economics

Understanding the direct revenues and costs associated with each unit of your product or service, essential for determining business model viability and scalability.

metrics
finance
cac
+3

Venture Capital (VC)

Professional investment firms that provide funding to startups and early-stage companies in exchange for equity.

investment
funding
equity
+2