Definitions & Terms

An investment thesis defines profitable investment traits, rationale, criteria, financial goals, and risk management strategies. It guides investor decisions with a detailed plan, outlining why and how investments align with goals and conditions for success.

Startup crowdfunding provides high-risk, high-reward opportunities in early-stage businesses. Investors can choose between equity or debt notes, benefit from lower investment thresholds, diversify their portfolios, and directly support innovation.

Venture debt provides startups with additional funding while minimizing equity dilution. It features higher interest rates and may include warrants for equity, offering flexibility and support during early growth stages.

A convertible note is short-term debt that converts into equity during future financing, benefiting startup seed investors by funding without immediate valuation, offering flexibility in early-stage investments and potential for equity participation.

Marketplace lending enables direct borrowing and lending via online platforms, connecting borrowers with investors without traditional banks. This modern financial practice uses technology to match loan seekers with lenders, fostering efficient fund transactions outside conventional banking channels.

Donation-based crowdfunding is a platform for raising funds where contributors donate money to support a cause or project without expecting financial returns. This method relies on the collective support of individuals who are passionate about specific initiatives or charitable causes.

Private credit is an essential component of the financial ecosystem, offering alternative sources of capital to businesses and individuals while providing financing solutions outside of traditional banking channels.

Private equity is an alternative investment where investors buy shares in private companies to enhance their value over time before ultimately selling for a profit. This type of investment often involves active management strategies, restructuring, operational improvements, and mergers to enhance the performance and value of the company.

Private markets are investments in debts and equities that are not listed on a public stock exchange. These markets provide investment opportunities for investors seeking potentially higher returns and diversification beyond traditional public markets, including venture capital, private equity, real estate, and alternative investments.

Digital lending or fintech lending refers to obtaining loans online through digital platforms. The process is streamlined, bypasses traditional intermediaries like banks, and often eliminates excessive paperwork. It is technology to simplify borrowing money. Instead of visiting a bank, you can apply for loans online.

Income investing is a strategy focused on generating regular income rather than capital appreciation, typically through dividends from stocks, interest from bonds, or rent from real estate. This approach aims for a stable cash flow, balancing risk and potential return.

Equity crowdfunding allows businesses to raise funds by enabling individuals to invest small amounts to become partial owners. Unlike traditional crowdfunding, where backers receive a product or thank-you, equity crowdfunding lets anyone invest as little as a few dollars to own a share of a company.