VC Jargon?

When I was a first-time founder, here’s the VC jargon I kept hearing but didn’t understand:

– “We have X hundred million under management” – This means how much money their fund has to invest and has invested. Sometimes it was a billion dollars.
– “We want you to find a lead” – Translation: they won’t invest first, they want another VC to set the terms.
– “We want founders to vest their shares.” – Means you earn your ownership over time to ensure you stick around.
– “What’s your burn rate?” – They’re asking how much cash you spend monthly.
– “We need to see more traction” – Usually means “your progress or metrics aren’t good enough.”
– “Let’s keep in touch” – The polite way of saying no.
– “What’s your cap table look like?” – Who owns what percentage of your company.
– “Give us pro rata rights” – The right to invest in future rounds to maintain their ownership.
– “We aren’t taking meetings because we are raising a new fund.” – They can’t make new investments until the new fund closes and your company isn’t “hot” enough that they would make an exception which every VC would do if the best company showed up at their doorstep.