Venture capital

Venture capital

Industry: Financial services

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Venture capital

liquidation

Financial services; Venture capital

Sale of the assets of a portfolio company to one or more acquirers when venture capital investors receive some of the proceeds of the sale.

liquidation preference

Financial services; Venture capital

The right to receive a specific value for the stock if the business is liquidated.

liquidity event

Financial services; Venture capital

The way in which an investor plans to close out an investment. Liquidity event is also known as exit strategy.

lock-up period

Financial services; Venture capital

The period an investor must wait before selling or trading company shares subsequent to an exit -- usually in an initial public offering the lock-up period is determined by the underwriters.

management buy-in (MBI)

Financial services; Venture capital

Purchase of a business by an outside team of managers who have found financial backers and plan to manage the business actively themselves.

management buy-out (MBO)

Financial services; Venture capital

Term used for the funds provided to enable operating management to acquire a product line or business, which may be at any stage of development, from either a public or private company.