Explainers
Plain-English guides to the language of private markets. Short, jargon-free, and written for readers who want the idea before the ticker.
| No. | Term | Stands for | In one line | Open |
|---|---|---|---|---|
| 01 | IPO | Initial Public Offering | The first time a private company sells shares to the general public. | |
| 02 | Direct Listing | Direct public offering on an exchange | A way to go public by listing existing shares, without raising new money. | |
| 03 | SPAC | Special Purpose Acquisition Company | A shell company that raises money first, then merges with a private business to take it public. | |
| 04 | Lock-up Period | Post-IPO selling restriction | A window after an IPO when insiders are not allowed to sell their shares. | |
| 05 | Valuation | What a company is worth | The price tag placed on an entire company, usually set in a funding round. | |
| 06 | Unicorn | A private company valued at $1 billion or more | A startup that has reached a valuation of at least a billion dollars. | |
| 07 | Funding Rounds | Seed, Series A, B, C and beyond | The stages in which a private company raises money from investors as it grows. | |
| 08 | Cap Table | Capitalization table | A record of who owns what share of a company. | |
| 09 | Secondary Market | Trading of existing private shares | Where existing shareholders sell private-company shares to other buyers. | |
| 10 | Tender Offer | A company-organized buyback or share purchase | An organized event where a company or investor offers to buy shares from holders. | |
| 11 | SPV | Special Purpose Vehicle | A separate legal entity set up to hold a single investment on behalf of many investors. | |
| 12 | Venture Capital | Investing in early-stage companies | Money from investors who back young, high-growth companies in exchange for ownership. | |
| 13 | Down Round | A funding round at a lower valuation | A round where a company raises money at a lower valuation than its previous one. | |
| 14 | Dilution | The shrinking of an ownership percentage | What happens to your ownership share when a company issues new shares. | |
| 15 | Accredited Investor | A person or entity allowed to invest in private deals | An investor who meets income or wealth tests set by regulators to buy private securities. |
Illustrative explainers. Figures in examples are hypothetical.
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