Depreciation Methods

A depreciation method is a means of calculating the overall amount of value goods will lose over their lifetime.

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This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.

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Simple Agreement for Future Equity (SAFE)

A financing instrument that allows investors to provide capital to a company in exchange for the right to receive equity at a later date, typically during a future funding round.

Subsidiary

A subsidiary is a company that belongs partially or completely to a parent company or holding company. It’s a separate company from its parent or holding company, yet the parent or holding company exerts at least some influence over the subsidiary through at least 51% stock ownership, seats on the board of directors, and company decision-making.

Key Man Clause

In an investment context, a key man clause is a contractual clause that prohibits an investment firm from making new investments in certain situations.