lead investor

See deal lead.

liquidation waterfall

The sequence in which all parties, including investors, employees, creditors and others, receive payouts in the event of a company’s liquidation through acquisition or bankruptcy.

What happens when a company is acquired for less money than it raised in funding?

liquidity event

When investors have the ability to convert some or all of their equity interest in a company into cash. Typically as the consequence of an acquisition, this can also happen if a company is very successful and new investors are willing to buy out the interest of early investors.

lock up

A period of time (typically after an IPO or an acquisition of a startup by a public company) during which certain shareholders are not allowed to sell their stock. Often 90 or 180 days, but could be a year.