The rate at which investment propositions come to venture capitalists.

Individuals know what being in debt means. In the financing of a business, there is a vital distinction between debt and equity. Debt is money borrowed from a bank or other institution, where interest has to be paid at a specified rate and the total borrowed must be repaid either on a specified date or (as in bank overdrafts) on demand. By contrast, equity is permanent capital, and the return paid to the provider of the equity is related to the profits of the business. See also gearing.

An element of a transaction to be paid in the future, sometimes depending on performance targets being achieved.

Example of polite management-speak to describe what happened in much of industry in the recession years of the late 80s early 90s. Layers of middle management, once thought essential, were stripped out of the corporate hierarchy. Many companies found it was more profitable to trade with fewer staff, lower their turnover and outsource some of their activities.

See growth capital.

When a company issues more shares, the value of each share is "diluted" - unless the total assets of the business are increased. See options.

A method of assessing the value of an investment based on predicted cash flows that are "discounted" to take account of the value of money over time.

A ratio that measures the number of times a dividend could have been paid out of the year's earnings. The higher the dividend cover the "safer" the dividend.

A bad investment.

Not some kind of fancy ice cream but a reference to economic recessions. Just when you think it is getting better it gets worse again.

See worst case scenario.

When investors commit themselves to back a venture, all the funding may not be needed at once. Some is used as "drawn down" later..

The detailed analysis and appraisal of a business, which takes place after a deal, has been agreed in principle. During due diligence nasty things may creep out of the woodwork - flaws may appear in a property lease, references on individuals may not say what was expected or assumptions on which profit forecasts were based may not make sense.