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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.

a b c d e f g h i j k l m n o p q r s t u v w x y z
Earnings Before Interest & Taxes
a.k.a. EBIT
EBIT, or Earnings Before Interest & Taxes, is a company's profit before income taxes.

See also: Earnings Before Interest & Taxes & Depreciation & Amortisation

Earnings Before Interest & Taxes & Depreciation & Amortisation
a.k.a. EBITDA
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.
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.
EIS1
This is an EIS compliance statement, a form HMRC requires companies to fill out and return after EIS shares are issued.

See also: SEIS1 EIS3

EIS3
For investors, EIS3 is a certificate from a company they invested in, confirming satisfaction of specific requirements within the Enterprise Investment Scheme.

See also: SEIS3 EIS1

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 .
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.
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.

See also: Capital Gains Tax 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.
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.
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.

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