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Reference
Funding glossary
Definitions for the most common terms founders run into when raising funds. Tap a letter to jump straight to it.
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Earnings Before Interest & Taxes
a.k.a. EBIT
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EBIT, or Earnings Before Interest & Taxes, is a company's profit before income taxes.
See also: Earnings Before Interest & Taxes & Depreciation & Amortisation
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Earnings Before Interest & Taxes & Depreciation & Amortisation
a.k.a. EBITDA
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EBITDA, or Earnings Before Interest & Taxes, Depreciation, & Amortisation, is a formula for measuring a business's profitability.
See also: Earnings Before Interest & Taxes
- EBIT
- EBIT, or Earnings Before Interest & Taxes, is a company's profit before income taxes.
- EBITDA
- EBITDA, or Earnings Before Interest & Taxes, Depreciation, & Amortisation, is a formula for measuring a business's profitability.
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EIS
a.k.a. Enterprise Investment Scheme
- Otherwise known as EIS, the Enterprise Investment Scheme is a tax-relief scheme that helps small firms to fundraise and grow. In addition, EIS often encourages investments into riskier business ventures, giving startups a greater chances at succeeding.
- EIS1
- This is an EIS compliance statement, a form HMRC requires companies to fill out and return after EIS shares are issued.
- EIS3
- For investors, EIS3 is a certificate from a company they invested in, confirming satisfaction of specific requirements within the Enterprise Investment Scheme.
- Elevator Pitch
- An elevator pitch is a short, persuasive description of a business, idea or product. This pitch is so-called as it takes about the same time to deliver as a quick ride in an elevator.
- Employee
- Particularly at a non-executive level, an employee is someone who works for a salary, rather than a consultancy fee, and benefits from employment law rights .
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Employee Option
a.k.a. ESOP
- An Employee Option is also known as Employee Stock Ownership Plan. It's a benefits scheme within the employee's company, allowing employees to have an equity interest in part or all of the group.
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Enterprise Investment Scheme
a.k.a. EIS
- Otherwise known as EIS, the Enterprise Investment Scheme is a tax-relief scheme that helps small firms to fundraise and grow. In addition, EIS often encourages investments into riskier business ventures, giving startups a greater chances at succeeding.
- Entrepreneurs Relief
- Renamed to Business Asset Disposal Relief.
- Equity
- In the investment world, equity is how much shares given by a company are worth. In other words, equity is the monetary value of an investor's stake in a business.
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ESOP
a.k.a. Employee Option
- An Employee Option is also known as Employee Stock Ownership Plan. It's a benefits scheme within the employee's company, allowing employees to have an equity interest in part or all of the group.
- Exit
- When an owner no longer has an equity interest in their business.
- Exit Strategy
- An exit strategy is a plan for founders to realise value in their business.




















