Startup Glossary: Letter "S"

A SAFE (Simple Agreement for Future Equity) Note is a financial contract created by Y Combinator that allows startups to raise capital without establishing an immediate valuation.

A Secondary Offering is a transaction where existing shareholders sell their shares directly to new investors, rather than the company issuing new shares.

A Seed Round is the first official equity funding stage for a startup, representing the initial capital used to demonstrate product-market fit.

Series A funding is the first major round of institutional equity financing, aimed at startups that have demonstrated product-market fit and are ready to scale.

Series B funding is designed to scale a startup past the initial growth phase, expanding its market reach, team size, and operations.

Series C funding is raised by highly successful, late-stage startups to accelerate scaling, fund acquisitions, or prepare for an exit (IPO/acquisition).

A Special Purpose Vehicle (SPV) is a legal entity created to pool capital from multiple individual investors to make a single investment in a specific startup.

The Strike Price (or exercise price) is the fixed price per share at which an employee has the right to purchase stock options in the future.

A Super Angel is a highly active angel investor who makes numerous early-stage investments, often operating with a similar volume and check size to micro-VC funds.

A Syndicate is a group of angel investors or smaller venture funds who pool their capital together to invest in a single startup.