Raise Millions by Hustle Fund VC Page 146 Limited Partners (LPs): A venture capital firm raises money from investors called Limited Partners (LPs). Then VCs invest that capital into startups and return money to their LPs in the event of an exit. Pre-money valuation: The pre-money valuation is the valuation of the business before it receives any outside investment. This is the number negotiated between founders and VCs that informs how much the investors will need to put in to purchase their desired equity stake. Pre-seed: The pre-seed stage is the first round of funding that founders raise. It’s also known as an “angel round” or “friends and family round”. Post-money valuation: The post-money valuation is the startup’s valuation after receiving outside investment. Post-seed: The post-seed stage is a gray area between seed and series A. You’ve made major progress as a seed-stage company but not quite enough to raise a Series A. You may hear people call this round the “mango seed stage”, “avocado seed stage”, or “pre-series A”. Qualified Small Business Stock (QSBS): This may help you become exempt from paying federal taxes when your company exits. Only Delaware C Corporations that have been around for at least five years can qualify for QSBS. See Delaware’s official page for the full details. hustlefund.vc / @hustlefundvc