Startup Glossary: Letter "W"

A Warm Introduction is a referral where a mutual contact connects a startup founder with a venture capitalist, significantly increasing pitch response rates.

A Waterfall Analysis is a financial model mapping the distribution of exit proceeds to shareholders in accordance with liquidation preferences, stock classes, and caps.

Weighted Average Anti-Dilution is a common investor protection clause that adjusts conversion prices during down rounds based on both the lower share price and the volume of new shares issued.

Working Capital is the difference between a startup's current assets (like cash, receivables) and current liabilities (like payables, short-term debt), measuring operational liquidity.