Comments about ‘Know entrepreneurial terms when you're raising money for a startup venture’

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Published: Sunday, Feb. 10 2008 12:21 a.m. MST

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False Profit

Joe, just a minor correction: "liquidation preference" is the industry term used to describe what you are calling "x-times".

Also, I've got some other terms that should be added to your list:

NASD Disciplinary Action: Violations of the NASD (National Association of Securities Dealers) Rules of Fair Practice; securities laws, rules and regulations; and the rules of the Municipal Securities Rulemaking Board.

Embezzlement: Withdrawing funds from your investors and placing them in your bank account without their knowledge or permission.

Fraud: Disseminating advertising and sales literature that contain exaggerated and unwarranted statements, incomplete and unfair statements, predictions and projections of investment results, and otherwise failing to conform with the NASD standards with respect to communications with the public.

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