Startup Glossary: Letter "F"

Fair Market Value (FMV) is the price that a share of common stock would sell for on the open market, as determined by an independent valuation.

A Family Office is a private wealth management firm that manages the investment portfolio and financial affairs of an ultra-high-net-worth family.

Feature Adoption is the rate at which active users discover, try, and continue to use a specific product capability.

A Financial Model is a spreadsheet-based forecast of a startup's future revenue, expenses, hiring plans, cash burn, and runway requirements.

Flat-Rate Pricing is a monetization model offering a single product version with all features for a single recurring price, regardless of seats or usage.

Founder Liquidity is the cash monetization of a founder's equity stake before a full corporate exit, typically executed through secondary share sales during late-stage funding rounds.

Founder Shares are the common stock issued to the original creators of a startup during the company's incorporation.

Founder Vesting is a mechanism where founders vest their own equity stakes over time, protecting co-founders and investors from early partner departures.

Free Cash Flow (FCF) is the cash generated by a startup's operations minus capital expenditures, representing cash available for debt repayment or expansion.

A Free Trial Model is a Go-To-Market pricing strategy offering full or limited access to a product for a fixed period (e.g. 14 days) at no cost.

A Freemium Model is a pricing strategy offering a basic product version for free, while charging a premium for advanced features, resources, or capacity.

Full Ratchet Anti-Dilution is an aggressive investor protection clause that adjusts the conversion price of preferred shares to match the lowest share price issued in any subsequent down round.

Fully Diluted Shares represent the total number of common shares outstanding if all convertible securities, warrants, and options were fully exercised and converted.