Small Business Technology Transfer program

The Small Business Technology Transfer program, from the US government; intended to assist educational institutions in transferring new technology to the private sector.7

Simple Agreement for Future Equity

A new form of funding for early stage companies developed by YCombinator to solve a number of issues with traditional convertible note financing.7

Software as a Service

SaaS refers to Software as a Service, a cloud based software application where users are charged on a subscription basis.6

Pooled Investment Vehicle

A legal entity that pools various investors’ capital and deploys it according to a specific investment strategy.8

Over-the-Counter

A market for securities made up of dealers who may or may not be members of a formal securities exchange. The over-the-counter market is conducted over the telephone and is a negotiated market rather than an auction market such as the NYSE.3

New York Stock Exchange

Founded in 1792, the largest organized securities market in the United States. The Exchange itself does not buy, sell, own, or set prices of stocks traded there. The prices are determined by public supply and demand. Also known as the Big Board.3

Internal Rate of Return

A typical measure of how VC Funds measure performance. IRR is technically a discount rate: the rate at which the present value of a series of investments is equal to the present value of the returns on those investments.3

Often used in capital budgeting, it’s the interest rate that makes net present value of all cash flow equal zero. Essentially, IRR is the return that a company would earn if they expanded or invested in themselves, rather than investing that money abroad.5

Initial Public Offering

Initial Public Offering or IPO is the first sale of stock by a private company to the public. IPOs are often smaller, younger companies seeking capital to expand their business.5

Significant Participation Test

A test that is satisfied if the General Partner determines in its reasonable discretion that Persons that are “benefit plan investors” within the meaning of Section (f)(2) of the Final Regulation constitute or are expected to constitute at least 25 percent of the interests of the Limited Partners.  Note that the test is 25% of the interests of all the limited partners, which means 20% (+/-) in the partnership as a whole, taking into account the general partner’s interest.3