CAC a.k.a. Customer Acquisition Cost: CAC, or the "customer acquisition cost", stands for the total cost in sales and marketing needed to earn a new customer over time.
Cap Table: A cap table, or "capitalisation table", is a spreadsheet or table for a start-up company that details who owns what shares or other equity interest in the business.
Capital Gains Tax a.k.a. CGT: Capital Gains Tax is a tax on the profit when you sell (or 'dispose of') something (an 'asset') that's increased in value.
Casting Vote: A casting vote to break a tied voting situation. For example, if there is deadlock within the Board of Directors.
CFEA a.k.a. Convertible Future Earnings Agreements: An investment instrument introduced by Horizon VC in 2021. Founders should be aware that, unlike SAFE, ASA, Convertible Loan Notes for example, the CFEA includes explicit Founder liability - even if the startup is liquidated, the founder owes the debt (and interest).
CGT a.k.a. Capital Gains Tax: Capital Gains Tax is a tax on the profit when you sell (or 'dispose of') something (an 'asset') that's increased in value.
Chairman: A chairman is a person who's in charge of a meeting, body, committee, etc. For example, their will usually be a chairperson on a company's Board of Directors.
CIC a.k.a. Community Interest Company: A CIC, or "community interest company", is a limited liability company designed to use its profits and resources for the public good. As a non-charitable social enterprise, a CIC exists to serve the community.
Cliff Reverse Vesting: In start-ups, cliff reverse vesting is often a one-year timeframe when an employee must continue to be employed before receiving any equity under a share option agreement.
See also: Vesting
CLN a.k.a. Convertible Loan Note: A CLN, or convertible loan note, is a short-term debt that can convert into equity at an agreed-upon future date. These are rarely used by angel investors in the UK, as they are not compatible with SEIS / EIS.
Community Interest Company a.k.a. CIC: A CIC, or "community interest company", is a limited liability company designed to use its profits and resources for the public good. As a non-charitable social enterprise, a CIC exists to serve the community.
Companies House: Companies House maintains and stores the official register of all UK corporate entities, including limited companies and limited liability partnerships. As a Government body, it can dissolve and incorporate companies.
Conflict of interest: A set of circumstances that creates a risk that an individual's ability to apply judgement or act in one role is, or could be, impaired or influenced by a secondary interest.
Consideration: A legal concept referring to the requirement for reciprocity of commitment between parties to ensure an agreement is legally binding.
Convertible Future Earnings Agreements a.k.a. CFEA: An investment instrument introduced by Horizon VC in 2021. Founders should be aware that, unlike SAFE, ASA, Convertible Loan Notes for example, the CFEA includes explicit Founder liability - even if the startup is liquidated, the founder owes the debt (and interest).
Convertible Loan Note a.k.a. CLN: A CLN, or convertible loan note, is a short-term debt that can convert into equity at an agreed-upon future date. These are rarely used by angel investors in the UK, as they are not compatible with SEIS / EIS.
Counterpart: A legal concept referring to a document with two or more parties that is signed separately by the parties, rather than everyone signing the same piece of paper.
Covenant: A covenant is usually a formal, legally binding agreement between two or more people.
Crowdfunding: Crowdfunding is raising money from many people, usually via the internet.
Customer Acquisition Cost a.k.a. CAC: CAC, or the "customer acquisition cost", stands for the total cost in sales and marketing needed to earn a new customer over time.