Spreading the expense/purchase price of a fixed asset (computer, equipment, etc.) over the operating periods it benefits (useful life). IRS Code provides guidance on useful life and depreciation methods.

Seed investment

The first contribution by a venture capitalist toward the financing of a new business, often using a loan or purchase of convertible bonds or preferred stock.

SIC code

Standardized method of classifying business/industrial activity, it represents principle segments of an economy with a numerical code. In the US, sic was established in 1987 and is now being replaced with the North American industry Classification System (NAICS) that...

NAICS code

The North American Industry Classification System (NAICS) is the standard used by the Federal Government to classify business establishments for the purpose of government contracting and statistical analysis.

Liquidity event

One of several events, typically a purchase of a corporation or an initial public offering. A liquidity event is a typical exit strategy of a company, since the liquidity event typically converts the ownership equity held by a company’s founders and investors...