Startup Glossary: Letter "L"

A Lead Investor is the venture capital firm or individual investor who orchestrates and writes the largest check for a startup's funding round.

A Limited Partner (LP) is an investor who commits capital to a venture capital fund but does not participate in active management or day-to-day operations.

Liquidation Preference is a protective legal clause in a term sheet that determines the order and amount of payout to preferred shareholders relative to common shareholders in an exit.

LTV (Lifetime Value) is the total net revenue a startup expects to earn from a single customer over the entire duration of their relationship.

The LTV to CAC Ratio compares the lifetime value of a customer to the cost of acquiring them, measuring marketing and sales funnel efficiency.