Glossary

Run rate is a financial projection that estimates a company’s future revenue (or other metrics) based on current performance. It’s typically calculated by taking revenue from a recent period, like a month or a quarter, and extrapolating it over a longer timeframe, usually a full

A round of funding is a formal process where startups raise external capital to fuel their growth. Each round typically reflects a stage in the company’s development, from an initial concept or prototype to large-scale expansion or pre-IPO maturity. In exchange for this capital, companies

A rolling forecast is a financial planning approach that uses real-time data and updated projections to predict future performance continuously, typically over a consistent forward-looking period like 12, 18, or 24 months. Unlike traditional forecasting methods tied to a fiscal year, a rolling forecast continuously

A rolling budget is a dynamic financial planning method in which budgets are continuously updated—usually monthly or quarterly—to reflect current realities and extend the planning horizon. Unlike traditional static budgets, which are set once a year and remain fixed regardless of actual performance, a rolling

A Roll-Up Vehicle (RUV) is a special-purpose legal entity consolidating multiple investors into a single entry on a startup’s cap table. It’s commonly used in venture deals, particularly for early-stage funding rounds that involve several small-check investors—angel investors, syndicate members, or micro-funds—who want to participate

Risk capital refers to the funds invested in a business or project with a high potential for loss but also offers the possibility of substantial returns. It is typically used to finance ventures in their early stages, including startups or new business ventures, which are

The Right of First Refusal (ROFR) is a legal concept that gives a party the first opportunity to enter a transaction before making the offer available to others. This right is commonly found in real estate, business contracts, and shareholder agreements. It allows the holder

Revenue run rate (RRR) is a financial metric used to project a company’s future revenue based on its current performance, typically measured over a short period (like a month or quarter). It is a forward-looking estimate that extrapolates current revenue figures to forecast the full

Revenue recognition is a fundamental accounting principle that dictates when and how revenue should be recorded in a company’s financial statements. This principle ensures that businesses report income in the period it is earned, not necessarily when payment is received. By adhering to revenue recognition

Revenue is the total amount of money a company generates from its business activities, primarily through the sale of goods and services. It represents the income from the core operations before any expenses are deducted. Often referred to as “sales” or “top line,” revenue is