Investor Forum

A high-net-worth individual who provides early-stage capital to startups in exchange for equity or convertible debt. Angel investors typically invest their own money and often contribute mentorship and industry connections alongside funding.

The investor who takes the primary role in a financing round, typically investing the largest amount, setting the terms, negotiating the term sheet, and conducting due diligence. The lead investor often takes a board seat and serves as the main point of contact for the company.

A comprehensive measure of investment performance that combines share price appreciation and dividends over a given period. TSR is a key metric for assessing whether management's investment in both tangible and intangible assets is translating into value creation for shareholders.

A framework for evaluating a company's performance across environmental impact, social responsibility, and corporate governance practices. ESG factors are increasingly material to valuation, investor mandates, and regulatory compliance, and intersect with intangible asset categories such as reputation and organisational capital.

Investment funding provided to established companies to accelerate expansion, enter new markets, develop products, or make acquisitions. Growth capital sits between venture capital (higher risk, earlier stage) and traditional private equity (mature businesses, often leveraged).

A group of investors who co-invest together in a single funding round, typically organised by a lead investor. Syndicates spread risk across multiple investors and allow companies to access a broader range of expertise, networks, and follow-on capital.

The portion of the total addressable market that a company can realistically serve given its current product, business model, and geographic reach. SAM is a more practical measure of near-term opportunity than TAM.

The total revenue opportunity available for a product or service if it achieved 100% market share. TAM represents the theoretical maximum market size and is used by investors to assess the scale of opportunity and the potential ceiling for a company's growth.

Return on Equity (ROE)

Net income divided by shareholders' equity, measuring the return generated on owners' invested capital.

What is an inside round versus an outside round?

An inside round is led by existing investors (selling their percentage), whilst an outside round is led by new investors, indicating market validation and higher valuation.

What is the Berkus Method for startup valuation?

The Berkus Method values pre-revenue startups by assigning values (typically up to £500K each) to five key milestones: sound idea, prototype, quality team, strategic relationships, and product rollout.

What is a venture capital fund?

A venture capital fund pools money from limited partners (LPs) to invest in early-stage, high-growth companies in exchange for equity, typically targeting 3-5x returns over a 7-10 year fund life.