Series A / B / C

The earliest formal round of equity financing, typically used to fund product development, initial hiring, and market validation. Seed rounds are usually raised from angel investors, seed funds, or accelerators, with investment sizes ranging from tens of thousands to several million pounds.

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 style of private equity investment focused on mature, profitable, or near-profitable companies seeking capital to accelerate expansion without ceding majority control. Growth equity investors typically target businesses with proven product-market fit and strong intangible asset bases, providing capital for scaling operations, entering new markets, or funding acquisitions.

The percentage of recurring revenue retained from existing customers over a period, including expansion revenue from upsells and cross-sells. NRR above 100% indicates that growth from existing customers outpaces losses from churn, a hallmark of strong product-market fit.

The degree to which a product satisfies strong market demand. Achieving product-market fit means customers are actively seeking and deriving value from the product, evidenced by organic growth, high retention, and willingness to pay.

A private equity or venture capital fund that continues to operate beyond its intended life, holding illiquid portfolio companies that have neither achieved exit nor been written off. Zombie funds present governance challenges, carry ongoing management costs, and often reflect unrealised intangible asset potential that has failed to convert into realisable value.

The simplest version of a product that can be released to early adopters to validate core assumptions and gather feedback with minimal development investment. The MVP concept, popularised by Eric Ries in The Lean Startup, enables founders to test product-market fit iteratively before committing significant capital to full product development.

A block of shares reserved for future issuance to employees, advisors, and consultants as equity incentives. Option pools are typically established before fundraising rounds, and their size (usually 10%-20% of fully diluted equity) affects both valuation and founder dilution.

What is full ratchet anti-dilution and why is it rarely used?

Full ratchet anti-dilution reprices an investor's shares downward if future rounds occur at lower valuation, effectively punishing the company for any down round.

What is broad-based weighted average anti-dilution?

Broad-based weighted average reprices investor shares downward if a future round prices lower, but only proportionally — less punitive than full ratchet, now market standard.

What is a flat round and what does it signal?

A flat round closes at the same valuation as the previous round, signalling plateau in growth and often preceding a down round if growth doesn't accelerate.