Startup Glossary: Letter "T"
Explore definitions, key metrics, legal terms, and financing mechanics shaping the startup ecosystem.
T
Tag-Along Rights
Tag-Along Rights (co-sale rights) are legal protections for minority shareholders that allow them to join in a transaction if a majority shareholder sells their stake.
TAM
TAM (Total Addressable Market) is the total market demand or revenue opportunity available for a product or service if 100% market share is achieved.
Term Sheet
A Term Sheet is a non-binding agreement that outlines the key financial and legal terms of a proposed investment round.
Total Value to Paid-In Capital
Total Value to Paid-In Capital (TVPI) is a performance metric for venture capital funds that measures the total value (realized returns + paper value) relative to the amount of capital paid in by investors.
Traction
Traction is concrete evidence of customer demand and product adoption, typically demonstrated through revenue growth, active user counts, or key pilot partnerships.