Bridge financing is a short-term financing option for companies that aims to cover immediate capital requirements until a long-term financing solution or the next financing round is secured.
Glossary entry
What is the break-even point and why is it important for businesses?
The break-even point is the moment at which a company's total revenue exactly covers its total costs, which means that no profit is made, but no loss is made either.
What is branding and why is it important for businesses?
Branding refers to the strategic process of developing a strong, unique brand identity that differentiates a company, product or service from its competitors and establishes an emotional connection with the target market.
What does ‘bootstrapping’ mean for a start-up?
Bootstrapping is an effective financing strategy for start-ups that makes it possible to grow without external investment by utilising only internal resources and self-generated revenue.
What is meant by the valuation of a start-up?
The valuation of a start-up refers to the estimated financial value of the company, often determined by investors or in financing rounds.
What is a shareholding agreement and why is it important?
An investment agreement is a legal document that sets out the terms and conditions of an equity investment between an investor and a company.
What is benchmarking and why is it used?
Benchmarking is the process of comparing your own business processes, performance and practices with those of leading companies or industry standards to identify areas for improvement and innovation.
What is a beachhead market, and why is it important for start-ups?
The beachhead market refers to a specifically selected market segment or target group that a company chooses as the first step in developing a larger market.
What is a buying centre and why is it important in B2B sales?
A buying centre refers to the group of people within an organisation who are collectively involved in the decision-making process for the purchase of products or services in a business-to-business (B2B) context.