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Question		Answer
Market size start learning		The total potential revenue available in a particular market.
Team quality start learning		The experience, skills, and cohesion of the founding team and management.
Product-market fit start learning		The degree to which a product satisfies a strong market demand.
Traction start learning		The progress and momentum a startup has made, often measured by metrics such as revenue growth and user adoption.
Competitive landscape start learning		The analysis of the current and potential competitors in the market.
Valuation start learning		The estimated worth of a company, often used to determine the investment terms.
Exit potential start learning		The likelihood of a profitable exit through acquisition, IPO, or other means.
Risk profile start learning		The assessment of the various risks associated with an investment, including market, product, and execution risks.
Investment thesis start learning		The strategic rationale behind making an investment in a particular company or sector.
Financial health start learning		The overall financial status of a company, including metrics like revenue, profitability, and cash flow.
Ownership stake start learning		The percentage of the company that an investor owns.
Syndicate partners start learning		Other investors who co-invest alongside the primary investor in a deal.
Governance and control start learning		The influence and control an investor has over a company's decisions, often through board seats or voting rights.
Term sheets start learning		The non-binding agreement outlining the terms and conditions of an investment.
Deal structure start learning		The specific terms and conditions of an investment deal, including valuation, equity stake, and investor rights.
Follow-on investment start learning		Additional investments made in a portfolio company in subsequent funding rounds.
Regulatory environment start learning		The legal and regulatory framework that affects a company's operations and growth.
Innovation and technology start learning		The uniqueness and defensibility of a company's technology or business model.
Customer base start learning		The demographic and behavioral characteristics of a company's customers.
Scalability start learning		The ability of a company to grow its business and increase revenue without a corresponding increase in operational costs.
Economic environment start learning		The broader economic conditions that can impact a company's performance, including interest rates, inflation, and economic growth.
Capital under management start learning		The total capital that a fund has raised from LPs to invest.
Management fee start learning		The annual fee that GPs charge LPs for managing the fund, typically a percentage of the AUM.
Carried interest start learning		The share of the profits that GPs earn from the fundâ€™s investments, typically 20% of the profits.
Internal rate of return (IRR) start learning		The annualized effective compounded return rate that can be earned on the invested capital, reflecting the profitability of investments.
Multiple on invested capital (MOIC) start learning		A measure of the total return on an investment relative to the amount of capital invested.
Distributed to paid-in (DPI) start learning		The ratio of cumulative distributions to LPs divided by the total capital called from LPs, indicating the cash returned to investors.
Residual value to paid-in (RVPI) start learning		The ratio of the residual value of the fund (unrealized investments) to the total capital called from LPs, indicating the remaining value in the fund.
Total value to paid-in (TVPI) start learning		The ratio of the total value of the fund (cumulative distributions plus residual value) to the total capital called from LPs, indicating the overall performance of the fund.
Net asset value (NAV) start learning		The value of the fundâ€™s assets minus its liabilities, representing the current value of the fund.
Committed capital start learning		The total amount of capital that LPs have committed to invest in the fund.
Capital gains tax start learning		The tax on the profit realized from the sale of a non-inventory asset.
QSBS exclusion start learning		A tax benefit allowing exclusion of capital gains from the sale of qualified small business stock under Section 1202.
Tax loss harvesting start learning		A strategy to sell securities at a loss to offset a capital gains tax liability.
Carried interest tax treatment start learning		The favorable tax treatment of carried interest as long-term capital gains rather than ordinary income.
Net investment income tax (NIIT) start learning		An additional 3.8% tax on investment income for individuals with high net income.
State and local tax (SALT) deduction start learning		The deduction of state and local taxes paid from federal taxable income, subject to a cap.
Charitable contributions of appreciated stock start learning		Donating appreciated stock to charities to receive a tax deduction for the fair market value while avoiding capital gains taxes.
Deferred compensation plans start learning		Plans that delay income recognition to future years, potentially at lower tax rates.
1031 exchange start learning		A strategy to defer capital gains taxes on real estate by reinvesting proceeds into similar properties.
Estate tax planning start learning		Techniques to reduce estate tax liability through gifting, trusts, and other strategies.
Return on investment (ROI) start learning		A measure of the gain or loss generated on an investment relative to the amount of money invested.
Customer acquisition cost (CAC) start learning		The cost associated with acquiring a new customer.
Customer lifetime value (LTV) start learning		The predicted net profit attributed to the entire future relationship with a customer.
Churn rate start learning		The percentage of customers who stop using a product or service during a given period.
Net promoter score (NPS) start learning		A metric that assesses customer loyalty and satisfaction by subtracting the percentage of detractors from promoters.
Annual recurring revenue (ARR) start learning		The annualized value of recurring revenue from subscriptions.
Monthly recurring revenue (MRR) start learning		The monthly value of recurring revenue from subscriptions.
Gross margin start learning		The percentage of revenue that exceeds the cost of goods sold, indicating the financial health of a company.
Earnings before interest and taxes (EBIT) start learning		A measure of a company's profitability that excludes interest and income tax expenses.
Weighted average cost of capital (WACC) start learning		The average rate of return a company is expected to pay its security holders to finance its assets.

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