Mediarun Glossary
Investments
Funds, valuations and what the contract says
36 terms in this section
ANGEL INVESTORA private individual investing their own money in early-stage companies, typically between 100,000 and 500,000 PLN.BOARD SEATA position for an investor representative on the company's decision-making body that sets strategy.BRIDGE ROUNDTemporary financing between larger funding rounds, most commonly using convertible instruments.CAP TABLEA summary of all owners: founders, investors, employee option pools, and convertible instruments.CLOSINGFormal completion of a transaction: signing documents, transferring funds, registering changes in the official registry.CO-INVESTMENTDirect investment alongside a fund, made by the fund's investor, a family office, or an industry partner.CONVERSION DISCOUNTA discount on the share price in a future funding round granted to early investors — typically between 10% and 25%.DATA ROOMAn organized online space where a company shares documents with investors for due diligence.DILUTIONThe reduction in the percentage ownership of existing shareholders when new shares are issued.DOWN ROUNDA funding round at a valuation lower than the previous one.DPI (FUNDUSZE)The ratio of cash actually returned to fund investors to the capital they contributed.DUE DILIGENCEThe process of verifying a company before investment: business, finances, legal matters, technology, and team.EXITThe moment when an investor converts shares into cash: selling the company, going public, buyback, or selling shares on the secondary market.FAMILY OFFICEA structure managing the wealth of a single family: investments, succession, philanthropy.FOLLOW-ON INVESTORAn investor joining the round on terms negotiated by the lead investor.HEDGE FUNDA fund employing a broad range of strategies—including short selling and leverage—available exclusively to qualified investors.HNWIAn individual with a high net worth, typically defined as having over one million dollars in liquid assets — excluding the primary residence.INVESTORAn entity committing capital in expectation of return: an individual, fund, company, or public institution.IPOA company's entry into the stock market: the first public sale of shares.IRRAnnual rate of return that accounts for the size and timing of cash flows.LEAD INVESTORAn investor who leads the round: negotiates terms, organizes due diligence, and oversees documentation.LIQUIDATION PREFERENCEThe right of an investor to recover their investment before other shareholders in the event of a company sale.M&ATransactions involving the consolidation of companies and the buying and selling of businesses.MOICMultiple of invested capital: the value divided by what was put in.PEA fund that buys stakes in mature companies, often control blocks, and frequently uses debt financing.PIAn abbreviation used to denote private capital: individuals and family offices, as distinct from institutional funds.POST-MONEY VALUATIONThe company's value after accounting for new capital: pre-money valuation plus the investment amount.PRE-MONEY VALUATIONThe company's value calculated before receiving funds from an investment round.SYNDICATEA group of investors — angels, family offices, smaller funds — pooling capital into a single transaction.TERM SHEETA summary of key investment terms: valuation, investor rights, board composition, liquidation preference. Generally non-binding.TVPIThe sum of distributions and the value of remaining assets divided by the capital invested.UP ROUNDA funding round at a valuation higher than the previous one.VALUATIONThe company's value agreed upon with investors. It appears in two forms: pre-investment and post-investment.VALUATION CAPThe maximum valuation at which a convertible instrument converts into equity — even if the company is valued much higher in a funding round.VCA fund that invests in young companies with high growth potential in exchange for equity.VETO RIGHTSA list of decisions the company cannot make without the investor's approval: selling the company, issuing new shares, taking on significant debt.