Glossary

Accelerator

An organisation that delivers a (usually) short term engagement to accelerate the development and market establishment of a startup that has already proved its viability. See also: Venture Builder Incubator

Accredited Investor

A person or business entity permitted to invest in securities without Financial Conduct Authority regulations applying.

Activation

Brand activation refers to an interaction, campaign or event which produces long-lasting relationships between a company and its potential customers. This activation also raises brand awareness amongst the target audience.

Advance Assurance

Advance assurance is when someone asks HMRC whether they agree that an investment meets the requirements of a venture capital tax scheme. Learn more about HMRC's advance assurance or AA

Advance Subscription Agreement a.k.a. ASA

An Advance Subscription Agreement is where investors pay for shares before receiving them in a later funding round. ASAs are an equity instrument. Read more about Advance Subscription Agreements or ASAs. Also learn about why we aren't a great fan of ASA.

Advisor

Someone who gives advice on a specific aspect of a business or transaction.

Advisory Board

An advisory board is a collection of experts who give their skills, knowledge and other support to an organisation.

Agile Funding

Agile funding can allow businesses to respond to evolving situations. This flexible approach enables businesses to fundraise outside of a formal financing round and accept money from some investors without waiting for all of them. Agile funding rounds are very straightforward to run on FounderCatalyst

Alphabet Shares

Alphabet shares are shares that are put into different classes that start with a letter in the alphabet. E.g. 'A' shares, 'B' shares. See also: Share Class

AML a.k.a. Anti Money Laundering

the legal requirements businesses must follow to avoid criminal activity. Anti-money laundering includes regulations, policies, and laws.

Angel Investor

An angel investor invests their money, support and knowledge into a small business, such as a start-up, for a minority equity stake. If you''ve seen the TV shows Dragon''s Den or Shark Tank, there are Angel Investors on there. Read more information about Angel Investors

Annual budget

An annual budget lays out a company's projected income and expenses for a defined 12 month period.

Anti Money Laundering a.k.a. AML

the legal requirements businesses must follow to avoid criminal activity. Anti-money laundering includes regulations, policies, and laws.

Anti-dilution

Anti-dilution provisions protect shareholders' rights to maintain ownership percentages if new shares are issued. You can read more about antidilution rights on our blog.

AP01

A Companies House form used to appoint a new director to an existing company. The business must submit the form to Companies House within 14 days of the individual's appointment.

Articles of Association

Highly important rules that say how a company should be run and overseen. These rules are, with a Shareholders Agreement, the foundational agreement between a company and its shareholders. We've got a great article detailing all of the documents produced by FounderCatalyst as part of a funding round.

ASA a.k.a. Advance Subscription Agreement

An Advance Subscription Agreement is where investors pay for shares before receiving them in a later funding round. ASAs are an equity instrument. Read more about Advance Subscription Agreements or ASAs. Also learn about why we aren't a great fan of ASA.