Plain-language definitions of the VC and fundraising terms African founders search for most, from SAFE notes to CAC.
ARR is MRR multiplied by 12, used to describe the run-rate of a subscription business. Here's how African founders should use it accurately with investors.
2 Aug 2026
A board seat gives an investor formal oversight and voting power over major company decisions. Here's what it means once your startup takes one.
Burn rate is how much cash your startup spends each month. African founders should track both gross and net burn separately. Here's why.
CAC is what it costs a startup to win each paying customer. Here's why African founders should always compare it against LTV, not report it alone.
A cap table tracks who owns what percentage of your company across every round, SAFE and option grant. Here's why African founders get it wrong.
Dilution is the reduction in your ownership percentage every time new shares are issued. Here's how African founders should model it before signing.
GMV is the total value of goods sold through a marketplace, not the marketplace's own revenue. Here's the difference African marketplace founders must know.
A lead investor sets the price and terms of a funding round and often takes the board seat. Here's what African founders should look for beyond the cheque.
Liquidation preference determines who gets paid first when a startup is sold. Most deals use 1x non-participating. Here's what founders should watch for.
MRR is the predictable revenue a subscription business earns every month. Here's why African SaaS founders should track it closely and report it accurately.
A pitch deck is the slide presentation founders use to explain their company to investors. Here's what African funds actually expect to see in one.
Pre-seed is the earliest institutional funding stage, usually before meaningful revenue. Here's what African VCs expect founders to have ready.
Pro-rata rights let an investor keep their ownership percentage by investing again in your next round. Here's why African founders negotiate them carefully.
Runway is how many months your startup can operate before running out of cash. African founders often miscalculate it. Here's how to get it right.
A SAFE note is Y Combinator's simple agreement for future equity used in early fundraising. Here's how caps, discounts and conversion actually work.
A seed round is the first meaningful institutional financing after pre-seed, raised once a startup shows early traction. What African founders need to know.
Series A is the round where investors expect a repeatable, scalable business model, not just early traction. Here's what changes for African founders.
A term sheet lays out the price, ownership and control terms of a VC round before binding legal paperwork. Here's what African founders should expect.
Valuation is what investors agree your company is worth in a funding round. Here's how African founders should think about pre-money vs post-money.
A warm intro is an introduction to an investor through someone they already trust. Here's why it beats cold outreach for African founders.