Exclusivity Period Sometimes referred to as Lock-out or No Shop period, a period of time requested by a prospective investor in which it can carry out its Due Diligence on a company and negotiate the related investment documents. During the Exclusivity Perio... read more
Exercise Notice A form that must be completed and returned to the company, along with the Exercise Price, in order to exercise a Share Option or a Warrant. ... read more
Exercise Price Also called the Strike Price, the amount that must be paid to convert vested Share Options or Warrants into shares in the company. Often, the Exercise Price will be the accepted market value of the company’s shares on the date the Sha... read more
Exit Event (also Liquidity Event) ... read more
Financial Promotion Order (FPO) The FPO regulates how and to whom an investment opportunity can be promoted. The rules are designed to protect investors. Generally, unless an investment opportunity is being promoted by or with the approval of a person or organisation reg... read more
Flowering Shares See Growth Shares ... read more
Founder The founder of a start-up business. ... read more
Friends and Family Round Early stage capital provided by friends and family of Founders – typically the first outside capital. At this stage of its development, the start-up is generally too early to raise capital from Angel Investors or Seed Inve... read more
Full Ratchet Adjustment Method of total protection from Dilution which protects an investor’s shareholding percentage from decreasing as a result of new shares being issued to other investors at a lower price (see Downround). Under a Full Ratchet... read more
Fully Diluted The total number of shares that would be issued if all possible Share Options and Warrants and Convertible Loans were to be exercised/converted and became shares. See also Convertible Loans, Converti... read more

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