Glossary

SAM a.k.a. Serviceable Available Market

Serviceable Available Market, SAM, is the market part that a business can get.

Scale

Scale refers to increasing revenue quicker than costs. Companies can scale in several ways. For example, a business may try to find market gaps or adopt new technologies.

Secondary

A secondary sale occurs when an existing stockholder sells their existing shares to a third party (rather than new shares being issued).

Seed Enterprise Investment Scheme a.k.a. SEIS

Seed Enterprise Investment Scheme, or "SEIS", is a government scheme offering tax-efficient benefits to investors. It offers investors better benefits than EIS, but is limited to £500K of investment per company. See also: Enterprise Investment Scheme

Seed Investment

Seed Investment, or Seed Funding, is the funds raised at the beginning of a business's journey to get enough money to develop an idea for a new product or idea.

SEIS a.k.a. Seed Enterprise Investment Scheme

Seed Enterprise Investment Scheme, or "SEIS", is a government scheme offering tax-efficient benefits to investors. It offers investors better benefits than EIS, but is limited to £500K of investment per company.

SEIS1

SEIS1 is a compliance form statement that investors send to HMRC to allow them to claim SEIS tax relief. See also: SEIS3 EIS1

SEIS3

SEIS3 is a certificate for investors containing vital information about their investment in a business with the SEIS scheme. See also: SEIS1 EIS3

Series A

Series A funding is a start-up business's initial venture capital-raising round.

Series B

Series B funding is a secondary material fundraising stage for businesses that have already been through a Series A round.

Series Funding

Series funding refers to the different stages of raising finance from venture capitalists or private equity investors for a start-up, after seed investments.

Serviceable Available Market a.k.a. SAM

Serviceable Available Market, SAM, is the market part that a business can get. See also: SOM TAM

Serviceable Obtainable Market a.k.a. SOM

Serviceable Obtainable Market, SOM, is a metric that provides a realistic indicator of what part of the market a company can realistically get in 3 to 5 years. See also: SAM TAM

SH01

The SH01 is a legal form that UK companies must submit to Companies House when they issue new shares. Learn how to file an SH01 on Companies House

SH02

The SH02 is a form companies file with Companies House to notify them that a share sub-division or consolidation has occurred. Learn how to file an SH02 on Companies House See also: Share split

Share Certificate

A share certificate provides shareholders with written proof of the number and class of shares they own in a company. We've got a great article detailing all of the documents produced by FounderCatalyst as part of a funding round.

Share Class

This denotes the class of share someone owns. See also: Ordinary Shares

Share split

A share split is when a share is divided into a greater number of shares with a smaller Nominal Amount. For example, a share with a £1 Nominal Value could be split into 100 shares with a 1 pence nominal value. Learn how to do a share split See also: SH02

Shareholder

A shareholder is a company, person, or institution that owns shares in a company.

Shareholder Resolution

Shareholder resolutions are formal decisions or agreements made by shareholders in a company. We've got a great article detailing all of the documents produced by FounderCatalyst as part of a funding round.

Shareholders Agreement

A shareholders agreement is legally binding and entered into by some or all shareholders in a business, to regulate how certain aspects of the company should be conducted. We've got a great article detailing all of the documents produced by FounderCatalyst as part of a funding round.

SITR a.k.a. Social Investment Tax Relief

Social Investment Tax Relief, or "SITR", is the UK government's tax relief scheme designed to encourage investors to support social enterprises. SITR also supports social enterprises in getting new funding sources. Social enterprises eligible include charities and community businesses.

Social Investment Tax Relief a.k.a. SITR

Social Investment Tax Relief, or "SITR", is the UK government's tax relief scheme designed to encourage investors to support social enterprises. SITR also supports social enterprises in getting new funding sources. Social enterprises eligible include charities and community businesses.

SOM a.k.a. Serviceable Obtainable Market

Serviceable Obtainable Market, SOM, is a metric that provides a realistic indicator of what part of the market a company can realistically get in 3 to 5 years.

Special Purpose Vehicle a.k.a. SPV

A Special Purpose Vehicle, or "SPV", is a company created for a specific purpose. For example, it could hold a trading group's intellectual property rights, or an office premises. Providers include Odin and Vauban.

SPV a.k.a. Special Purpose Vehicle

A Special Purpose Vehicle, or "SPV", is a company created for a specific purpose. For example, it could hold a trading group's intellectual property rights, or an office premises. Providers include Odin and Vauban.

Subsidiary

A company owned and/or controlled by another company. The company that owns the subsidiary is called a holding, or parent, company.

Sweat Equity

Sweat equity is the non-monetary contribution business stakeholders put into the business.

Syndicate

A syndicate is a group of people or organisations that comes together to execute a project or for business purposes.