Pari Passu

A venture capitalist (VC) is an investor who provides private financing to a company in exchange for an equity stake (typically 15% to 45% of the company). VCs normally invest in startups or small companies that are seeking to expand, though some venture capitalists invest in more mature companies.

A bear hug is an acquisition strategy where one company offers to purchase another at a much higher price than that company’s valuation. It’s sometimes viewed as a hostile takeover, but it’s more beneficial for shareholders than most hostile takeovers would be.

A limit on the conversion price of a convertible security, such as a SAFE or ASA, used to protect investors from excessive dilution in future funding rounds.