Startup Glossary: Letter "R"

Restricted Stock Units (RSUs) are equity-based compensation where an employee is promised shares of company stock in the future, subject to vesting and liquidity conditions.

Right of First Refusal (ROFR) is a legal clause giving the startup (or its major investors) the right to purchase shares from a selling shareholder on the same terms before they can sell to an outsider.

Run Rate is the financial performance of a startup extrapolated over a future period (usually a year) based on current month performance.

Runway is the amount of time a startup can continue to operate before running out of cash, assuming no new revenue is generated.