Funds lent to a company by an institution in the form of a loan which requires interest payments and the eventual repayment of the loan. Increasingly flexible options are now available through various FinTech companies.
A Delivery Manager facilitates the timely production of software through the effective management of team members and work schedules. They clear any impediments that may slow down their team's progress on a project and set the timelines on which products will be delivered.
Dilution occurs when external funds are raised - with new shares issued to investors in exchange for cash. If a founder owned 500 out of 1,000 shares (50% ownership), but 500 new shares were issued in a pre-seed round to raise funds, once the round closed the founder would only own 500 out of 1,500 shares (33% ownership). This represents equity dilution.
When a company's valuation is lower than the valuation that was set in the previous funding round. Valuations are expected to increase with every funding round, so a down round can be a very negative signal to existing and prospective investors.
Due Diligence is an in-depth analysis of a business undertaken by a prospective buyer or investor. It investigates the company’s health by analysing assets, liabilities, financial information and evaluating its commercial potential.