Early stage

Financing of a product at a testing or first production phase. The project is generally less than 30 months old and generates or is about to generate its first revenues.

Earn out

Portion of the acquisition price paid to the seller after closing and whose payment is conditional upon achievement of certain performances (set out at closing) by the company. This variable part is generally paid within a maximum of three years following the acquisition and is based on financial aggregates such as revenues, operating profit, net profit. This mechanism often allows an arbitrage between a seller's aspirations who would believe his company is under-valued vs its potential, and a buyer who'd have trouble assessing the risk associated to the investment.

Equity

One of the three main financing means of a company along with mezzanine and bank debt. Equity value represents the value of the shares of a company in opposition to the Enterprise value which represents the value of the assets (Equity value + net debt).

Equity kicker

Financial instruments giving access to a company's capital. Used by mezzanine lenders under the form of warrants or convertible bonds.

Exit

Exit of an investment.