Complicated Business Terms Simplified PART 3 Bootstrapping: building a business with minimal external funding, relying on personal savings and revenue generation. Angel Investor: An individual who provides early-stage funding to startups. Venture Capital (VC): Investment provided by firms or individuals to high-growth startups in exchange for equity. Debt Financing: Borrowing money that must be repaid with interest. Equity Financing: Selling ownership in exchange for capital with no repayment obligation. Leverage: Using borrowed capital to increase potential returns on investment. Economies of Scale: Cost advantages a business gains as production increases reducing per-unit costs. Working Capital: A measure of a company’s short-term liquidity and operational efficiency. Exit Strategy: A planned approach for investors or business owners to exit an investment and realize profits. Merger: When two companies combine to form one. Acquisition: When one company buys another.
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