Glossary of terms

E | P | V

E

Exit: The final step in the investment cycle, when the fund sells its stake in the company. Generally other owners are also involved in the exit stage.

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P

Pre-money valuation: Value of the company before capital injection.

Private Equity: Equity capital

Private Equity Fund: A closed-end (the number of investors is limited, investment into the fund is not open to the general public) investment fund, which invests funds into private equity shareholdings.

Post-money valuation: Value of the company following the capital injection.

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V

Venture Capital Fund: A special form of Private Equity fund which focuses its investments into companies which are in their early stages of growth.