Series A / B / C

A form of private equity financing provided to early-stage, high-growth potential companies in exchange for equity. VC firms typically invest across multiple rounds (seed through Series C+), provide strategic guidance, and target returns through exits within 5-10 years.

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.

A financing round in which a company raises capital at a lower valuation than its previous round. Down rounds signal reduced confidence in the company's prospects and typically trigger anti-dilution protections that further dilute founders and earlier investors.

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.