Work in progress (work in progress — WIP)
Partially executed contracts; at long-term contracts in work in progress cost can join and a profit element
Noncommercial fund (Foundation)
The financially-administrative organisation, according to the Charter not having the right to be engaged in commercial activity, i.e. To get profit on the authorised activity
Not quoted company (Unquoted/unlisted company)
The company which actions are not registered and not prodajutsja-are bought at stock exchange
Nepotism, from an armour. Nepos — the descendant)
Accepting on "grain" posts of relatives or "the" people
Open-end fund
The fund to leave which railroad train of participants at desire or it is possible for necessity at any time
The partner with limited liability (Limited partner)
E÷ðåäèòåëü or the investor of the venture fund answering under its obligations and risking only within the sum brought it in fund of means
The passive investor (Passive investor)
The venture capitalist at absence at it actions invests on a long-term basis, without having the plan of an exit from business and expecting to receive the income at the expense of annual dividends
Initial cost (Pre-Money Valuation)
Preliminary determined cost of the company before means of the venture investor will be brought in it
The initial obligation of the investor (Investor's initial commitment)
The obligation of the investor to bring a certain sum of money in îáðàçóåìûé venture fund
The first share issue (Initial Public Offering - IPO)
The initial tender to sale of shares of company
Resale of a part of the company to the firm which is engaged in similar business (Trade sale)
One of the most widespread forms äèâåñòèðîâàíèÿ (an exit from the project) when participation in business is on sale to the buyer in the same area of manufacturing of the goods or services in which the proinvested company operates
The rights to liquidity (Liquidity Rights)
The rights determining possibility, way and time of sale, the repayment or other transfer of pledge. Includes the right to offer pledge on the open auctions («the registered rights of the requirement»), the rights to purchasing or sale for an agreed price or the formula (options) or the rights of participation in any sale of pledge to the third party («the participation rights»). Can be limited «by the right to refuse the first»
The choice right of priority (First refusal)
The right of the first choice by competitive consideration of applicants for investments into again created company or into expansion of already successfully existing business
Proactive exit (proactive exit)
The plan of an exit provided in advance by the investor from the project or business
Residing with the company (Living with company)
The period of active interaction of the venture capitalist with the company in which its means are enclosed
Bridge financing
The short-term or intermediate term investments intended for the companies, formed of the terminated joint-stock companies in opened and wishing to register placing of the actions at a stock exchange or to get access to other sourcings
Ratchet
The mechanism provided by the agreement of shareholders of transfer of stock of the investor to management at achievement by business of the certain indicators, maintained in the agreement concluded by shareholders
Royalty
The payments of any kind received as compensation for use or granting of the right of use by any copyright, any patent, know-how, computer programs, a trade mark, design or model, the plan, the confidential formula or process
Shareholders agreement
The document signed by the venture investor and owners of the companies before official registration of occurrence of the investor in the company
Spread profitablenesses
Difference between the price of purchasing of actions and by their possible sale at an exit from the project
Strategic buyer
The large company in the same area of manufacturing or services in which the proinvested company operates. More often the exit from investment is performed through resale to the strategic buyer
Deal structure
The arrangement between the venture investor and the businessman about allocating of shares or actions in the company capital, the form, methods, ways of investment and the size of investments
The operating company of fund (Fund manager)
The legal body employed by investors for the purpose of the order by their means, enclosed in fund for effective financing of new business or developing existing is routine
The operating partner (General partner)
Legal or the physical person chosen by investors as the senior partner on whom responsibility on management of fund (performed by him or through the hired operating company of fund lays down). The operating partner bears full responsibility, unlike other partners which responsibility is limited by their share of participation in association
Fund of the venture capital (Venture capital fund)
The financial organisation which major function is investment in new business or expansion existing
Fund of investments into direct financing (Private equity fund)
Routinely transparent for the taxation the fund which is not possessing the rights of the legal person, management which are performed by the operating company of fund. The fund is created for the purpose of realisation of joint investments (the repayment fund see also)
Funds of early stages (Early stage funds)
the Financial organisations investing means at early stages of creation of a small-scale business, the companies, realisations of projects at the expense of the venture capital
Franchising — commercial concession
The Russian Federation is regulated by chapter 54 ÃÊ. The term «Commercial concession» is equivalent to the term franchising. Under the contract of commercial concession one party (legal owner) undertakes to give to other party (user) for compensation for term or without instructions of term the right to use in enterprise activity of the user a complex of the exclusive rights belonging to the legal owner, including the right to the company name and (or) a commercial designating of the legal owner, on the protected commercial information, and also on other objects of exclusive rights provided by the contract — a trade mark, a service mark etc.
