Welcome to the Arbo Glossary! This concise and comprehensive resource provides definitions and explanations of key accounting, finance, and startup terms.
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SAFE is a financial instrument used in early-stage startup funding. It allows investors to provide capital in exchange for the right to convert their...
An SPV is a legal entity created for a specific purpose, often to isolate financial risk or facilitate investment. It can pool funds from multiple...
A venture capital associate is a junior-level professional working at a venture capital firm. They support investment activities, conduct due...
A venture capital partner is a senior member of a venture capital firm responsible for leading investment decisions, managing portfolio companies,...
A venture capital principal is a mid-level professional in a venture capital firm. They typically have more experience than associates and play a key...
The Delaware Franchise Tax is a fee imposed on businesses incorporated in Delaware. It is unrelated to franchised businesses but applies to many...
QSBS refers to stock issued by a qualified small business that may qualify for certain tax benefits, such as excluding capital gains upon its sale,...
SAM represents the portion of the total addressable market (TAM) that a company can effectively target and serve with its products or services based...
Annual Recurring Revenue (ARR) is recurring revenue, as defined by your revenue recognition policy, calculated annually. ARR is the sum of...
Vesting acceleration refers to the acceleration of equity or stock vesting for an individual, allowing them to receive ownership rights ahead of the...
ARPU is a metric technology, media, and telecom companies use to calculate the average revenue generated per customer or user. It helps measure the...
Billings represent the amount of money that has been invoiced for goods or services and will be paid in the near future. It is a measure of a...
Board directors are individuals elected by shareholders to oversee a company's management and strategic direction. They make important decisions and...
Bookings refer to the total value of signed contracts when a client commits to purchasing products or services from a company. It represents the...
The burn multiple measures a company's capital efficiency. It is calculated by dividing the net cash burned (cash used by the company) by the net new...
Cohort analysis involves dividing customers or users into groups based on a shared characteristic or timeframe, such as their sign-up month.
A basis point equals one-hundredth of a percentage point (0.01%). It is commonly used in finance to measure small changes in interest rates, bond...
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