Added value	Value that the investor brings to a venture in addition to the capital, such as knowledge
Benchmark	An index or other external source of data with which your own performance is compared
Break-even-point	The point in time where an investment has just been repaid but not yet erarned profits
Buffer	Capital in excess of what is known to be required or unused lines of credit
Burn rate	The speed at which a technology company uses venture capital to develop its business
Business angel	Private equity investor
Business plan	A document prepared by the management describing what the company aims to achieve
Buy back	A common exit possibility - the previous owners buy back the investor's share
Capital gain	The profit realised at the exit
Chinese walls	Procedures to prevent information flowing freely in a company and create conflicts of interest
Convertible loan	A loan which under certain conditions can be changed into ordinary shares
Co-venturing	When several investors together make an investment
Deal flow	The flow of companies seeking funds that contact an investor
Due diligence	A review by auditors and lawyers prior to a deal in order to verify the financial and legal position of the company
Entrepeneur	A manager-owner of a company, often the one who started it up
Exit	When the investor sells his share of the company
Feasibility study	A brief study to investigate whether further detailed work is worth carrying out
Incentive system	The financial arrangements in addition to the salary, such as options, to keep key personnel in the company
IPO - Initial Public Offer	When a private company for the first time is offered for sale publicly on a stock market
IRR - Internal Rate of Return	The rate of profit made on investments
Lead investor	When several investors co-invest, the biggest investor usually plays a more active role
LBO Leveraged Buy-Out	When the management buys a company using a very high proportion of debt
MBI Management Buy-In	When a company is acquired by investors who replace the old management and steps in instead
MBO Management Buy-Out	When parts of a company owned by investors are bought by the current management
Mezzanine funding	Financial instruments which have features both of debt and equity
NPV Net Present Value	The net amount a project or an investment earns when the time effect of money is considered
ROI Return on Investment	The percentage of the profit earned to the capital invested
Sale-back	When shares in a company are sold back to the original owners
Seed money	Funds used to finance the start-up on a new business
Spin-off	A part of a business which is separated into a separate company and sold
Subordinated debt	Debt which has lower preference than normal debt in a bankruptcy
Syndication	When several investor jointly make an investment as one single entity
Track record	The past achievements of a person or a company
Venture capital	Capital used to fund risky enterprices without proper collateral