Venture capital

Venture capital

Industry: Financial services

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Venture capital

lead investor

Financial services; Venture capital

The investor who leads a group of investors into an investment. Usually one venture capitalist will be the lead investor when a group of venture capitalists invest in a single business

leveraged buy-out (LBO)

Financial services; Venture capital

Acquisition of a business using mostly debt and a small amount of equity. The debt is secured by the assets of the business.

The legal structure used by most venture and private equity funds. Usually fixed life investment vehicles. The general partner or management firm manages the partnership using policy laid down in a ...

liquidation

Financial services; Venture capital

Sale of the assets of a portfolio company to one or more acquirers when venture capital investors receive some of the proceeds of the sale.

liquidation preference

Financial services; Venture capital

The right to receive a specific value for the stock if the business is liquidated.

liquidity event

Financial services; Venture capital

The way in which an investor plans to close out an investment. Liquidity event is also known as exit strategy.

lock-up period

Financial services; Venture capital

The period an investor must wait before selling or trading company shares subsequent to an exit -- usually in an initial public offering the lock-up period is determined by the underwriters.