Fundraising Terms to Get You Funded

glossary of fundraising terms

Master these fundraising terms to get you funded:

Term (English)Definition (English)
Burn RateThe rate at which a company spends its cash reserves before generating positive cash flow.
Customer Acquisition Cost (CAC)The total cost of sales and marketing efforts needed to acquire one new customer.
Cap TableA spreadsheet detailing ownership stakes, equity dilution, and valuation across funding rounds.
Churn RateThe percentage of customers who stop using your product/service within a given period.
Data RoomA secure digital repository for sharing confidential documents during due diligence.
Due DiligenceThe comprehensive appraisal of a business by investors to confirm facts and assess risks.
Customer Lifetime Value (CLTV)The total revenue a business can expect from a single customer throughout their entire relationship.
Monthly Recurring Revenue (MRR)Predictable revenue generated each month from active subscriptions or contracts.
RunwayHow many months your company can operate before running out of cash at current burn rate.
Term SheetA non-binding document outlining the key terms and conditions of an investment deal.

Need help with these fundraising terms and how to get those numbers? Bonarta can assist!