Glossary
Short definitions for terms that appear on screen. The in-modeler glossary has ~68 terms with more depth.
- MOIC
- Multiple on invested capital — proceeds divided by capital invested.
- DPI
- Distributions to paid-in — cash returned to LPs relative to paid-in capital.
- TVPI
- Total value to paid-in — DPI plus remaining NAV over paid-in.
- RVPI
- Residual value to paid-in — unrealized value still held relative to paid-in.
- Carry
- GP share of profits after hurdle, typically 20%.
- Hurdle
- Preferred return LPs receive before carry, often 8%.
- Liquidation preference
- Senior claim on exit proceeds, often 1x invested capital.
- Participating preferred
- Takes preference then shares leftover with common.
- Conversion
- Preferred converts to common when that yields more than preference.
- SAFE
- Simple agreement for future equity; modeled as converting at exit.
- FD shares
- Fully diluted share count including options and convertibles per assumptions.
- OIP
- Original issue price ($/share) for preferred — the base used for preference multiples and many dividend assumptions.
- BLUF
- Bottom Line Up Front — the short copy block on Cap Table, Waterfall, Decay, and Fund MOIC outputs meant for an IC memo.
- Preference overhang
- Total liquidation preference dollars stacked above common. When overhang ≈ exit proceeds, common is often zero.
- Kink
- Exit value on the waterfall curve where economics change — usually where preferred converts or a participation/cap kicks in.
- Common breakeven
- Approximate exit proceeds level at which common starts receiving meaningful value after preferences.
- BBWA / NBWA / full ratchet
- Anti-dilution methods (broad-based weighted average, narrow-based, full ratchet) that reprice prior preferred when a down round closes.
- MFN
- Most favored nation — a convertible/SAFE term that upgrades to better terms later investors receive.
- Pari passu
- Same seniority — preferred classes share preference proceeds pro rata instead of stacked by series.