Glossary of financial terms

An association of security houses, investments banks, venture capital firms, professional advisors and others formed to promote the development of security markets in Europe for growth companies. The creation of the EASDAQ stock market was one of its first initiatives. It has over 160-member organisation.

EASDAQ is the only pan-European stock market for growth and technology companies. Modelled on NASDAQ (US), EASDAQ is screen based (it does not have a trading floor) and quote driven, with an average of six market makers per security.

Earnings before interest and taxes - a financial measurement often used in valuing a company.

Earnings before interest, taxes, depreciation and amortisation - a financial measurement used in valuing a company.

Earnings Before Tax

SEC's (US) online public company database.

Essentially, an entrepreneur is a person who starts a new business venture. However, we tend to think of entrepreneurs as people who have a talent for seeing opportunities and the abilities to develop those opportunities into profit-making businesses. Are entrepreneurs born or made? The debate still rages, but the current consensus is that successful entrepreneurs share a constellation of personality traits. In other words, some people are naturally more entrepreneurial than others. A common misperception about entrepreneurs is that entrepreneurs are wild risk-takers. Entrepreneurs do take risks, but only calculated ones. One of the abilities successful entrepreneurs share is the ability to evaluate risks.

Ownership interest in a corporation, usually represented by the shares of stock, which are held by individuals or corporations. Also, it's the excess of balance-sheet assets over liabilities.

A means of raising funds by offering ownership in a corporation through the issuing of shares of a corporation's common or preferred stock (Also see Initial Public Offering and Private Placement)

See 9.Convertible Debenture : Convertible Debenture

Estimated Route to Exit for investor from a particular investment; describes financial mechanism how a investor will cash its investment in a certain point of time in the future (e.g. IPO on stock exchange, MBO etc.)

Estimated Time To Exit for investor from a particular investment; gives estimation of how long a investor will be involved in a deal

An association formed to promote and facilitate European private equity and venture capital. It has over 600 member organisations across Europe and North America. EVCA was key in the founding of EASD. EVCA is headquartered in Brussels.