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Investors & Companies

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IVC helps you to gain a better understanding of investment terminology. Whether you’re searching for the latest deal flow, potential investors or angels, this list will help you perform your searches quickly and efficiently. If you’re not sure where to look, use our Advanced Search to locate companies and key executives.

 

 

                                                                                                                                                                                                                                       

 

 

Acquisition (Takeover) | Acquiring control of a corporation, called a target, by stock purchase or exchange, either hostile or friendly. 

Angel Investor| An individual who provides capital to one or more startup companies.

Corporate Venture Capital (CVC)| A subsidiary of a large corporation, which makes venture capital investments.

Private Equity Fund| A fund which invests primarily in stocks, usually common stocks.

Fund of Funds| A fund which invests in other funds.

Hedge Fund| A fund, usually used by wealthy individuals and institutions which is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives. Since they are restricted by law to less than 100 investors, the minimum investment is typically $1 million. The general partner usually receives performance-based compensation. Hedge funds are not common in Israel.

Holding Company| A company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. Also called a parent company.

Incubator| A company or facility designed to foster entrepreneurship and help startup companies, usually technology-related, to grow through the use of shared resources and intellectual capital.

Investment Company| A firm that invests the pooled funds of retail investors for a fee. There are two types: open-end (mutual funds) and closed-end (investment trusts).

Management Company| The firm that organizes, manages, and administers funds.

Mutual Fund| An open-ended fund operated by an investment company, which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Benefits include diversification and professional money management. Shares are issued and redeemed on demand, based on the fund's net asset value, which is determined at the end of each trading session.

Secondary Fund| A fund which purchases a security from another investor rather than the issuer, subsequent to the original issuance in the primary market.

Turnaround Fund| A private equity fund, which invests in troubled companies to cause a sharp, positive reversal in their performance.

Venture Capital (VC) Fund| Funds made available for startup firms and small businesses with exceptional growth potential. Managerial and technical expertise are often also provided. Also called risk capital

                                                                                                                                                                                                                                                                                                                                                                                                                                                      

 

 

 


 

 
 

 

 

 

Employee Stock Ownership Plan (ESOP) | A trust established by a corporation for the allocation of some of its stock to its employees over time, intended to motivate employees, and often providing tax benefits to the company. Also called stock purchase plan. 

Extended Round| Additional funds put in a company, by either a new shareholder or an existing one, received in a separate or later tranche within the frame of a single series or round of investment. In many cases, the original round deadline is extended to a later date, allowing new shareholders to invest in the company under the same terms as investors in the earlier round. 

Fully Invested | An investment entity that has no cash or cash equivalents for new investments. It makes follow-on investments only. 

Lead Investor | A company's principal provider of capital, such as the entity, which originates and structures a syndicated deal.  

Term Sheet | In venture capital, a document summarizing the details of a potential venture capital investment, which serves as the basis for a final business agreement.

Venture Leasing | A financing vehicle for infrastructure and equipment needs, in cases when a company doesn't qualify for bank or traditional leasing financing or when additional venture capital may either be unavailable or trigger unwanted penalties in the original venture-capital agreement.

Venture Lending | A middle ground of financing for firms that need equity capital, don't want or can't get sufficient bank financing, but that are not yet ready to go public with their products or services.

Write-Off | To charge an asset amount to expense or loss, in order to reduce the asset value.

 
     

 

 
   

 

 

 

Bridge Loan | Short-term financing which is expected to be paid back relatively quickly, such as by a subsequent longer-term loan. Also called bridge financing. Usually convertible to equity. 

Equity Financing| Financing by selling common stock or preferred stock to investors. 

Leveraged Buyout (LBO) | Takeover of a company or controlling interest in a company, using a significant amount of borrowed money. 

Management Buyout| Takeover of a company through management's purchase of all outstanding shares.

Mezzanine FinancingLate-stage venture capital, usually the final round of financing prior to an IPO. 

Private Investment in Public Entity (PIPE) | A transaction in which accredited investors are allowed to purchase stock in a public company, usually below the market price. The stock is registered with the SEC so that it may later be resold to the public.