Later-Stage Financing
Later-stage financing is the process of funding a company that has already achieved significant growth and is seeking capital to expand further, optimize operations, or pursue new markets.
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Related Terms
View all termsLeverage
Leverage is the strategic use of borrowed capital to increase the potential return on investment.
Leveraged Buyout (LBO)
A Leveraged Buyout (LBO) is a financial transaction where a company is acquired using a significant amount of borrowed money, typically bonds or loans, to meet the cost of acquisition.
Limited Partner (LP)
A Limited Partner (LP) is an investor in a partnership who provides capital but bears limited liability for the partnership’s debts and obligations, playing a crucial role in investment vehicles like private equity funds, venture capital funds, and hedge funds by contributing capital without participating in management.
Limited Partnership Agreement (LPA)
A Limited Partnership Agreement (LPA) is a legal contract that outlines the terms, conditions, rights, responsibilities, and liabilities of general and limited partners in a limited partnership, crucial for managing investment funds, particularly in private equity and venture capital.
Liquidation Preference
Liquidation preference determines the payout order in the event of a company’s liquidation or sale, specifying who gets paid first and how much they receive when a company is dissolved or acquired.
Lock-Up Period
A lock-up period is a predetermined span of time during which investors are restricted from selling or redeeming shares of a particular investment.
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