investment-terms

Vocabulary Word

Definition

'Investment terms' refer to the specific details agreed upon when someone invests money into a business. This includes how much money will be invested, how it will be used, and when the investor might expect a return.

Examples in Different Contexts

In Equity Financing, 'investment terms' outline the conditions under which investors provide capital for equity in a company, detailing aspects like share price, board representation, and voting rights. A CFO might state, 'We agreed on investment terms that reflect our company's current market position and future growth trajectory.'

Practice Scenarios

Business

Scenario:

We have an investor meeting today, and we need to clarify the conditions under which they'll be giving us the financial support.

Response:

Absolutely, we need to have clear investment terms in place before we proceed.

Start-Up

Scenario:

We are finalizing our funding round, and the venture capitalists have proposed quite detailed conditions for their capital infusions.

Response:

Let's negotiate the investment terms that favor both us as a start-up and the venture capitalists.