Venture Enterprise Glossary
Key terms related to Korea's venture enterprise system, explained clearly.
Angel Investment
Angel Investment
Direct investment by individual investors (angel investors) in early-stage venture enterprises, eli…
Angel Investment Fund
Angel Investment Fund
A fund formed by individual investors for joint investment in venture enterprises, with income dedu…
Business Valuation
Business Valuation
The process of determining the economic value of a business in monetary terms using methods like DC…
Dilution
Dilution
The reduction of existing shareholders' ownership percentage due to new share issuance.
Exit
Exit
The process by which investors recover their investment through IPO, M&A, or secondary sale.
Internal Rate of Return
Internal Rate of Return
The discount rate that makes the NPV of an investment zero. A key metric for measuring venture inve…
Multiple on Invested Capital
Multiple on Invested Capital
The ratio of total return to invested capital. MOIC = Total return / Invested capital. E.g., 2x MOI…
Post-money Valuation
Post-money Valuation
The valuation of a company after new investment. Pre-money + Investment amount = Post-money.
Pre-money Valuation
Pre-money Valuation
The valuation of a company before new investment. Represents the company's value prior to the inves…
Venture Capital (VC)
Venture Capital (VC)
Investment firms providing capital and management support to high-risk, high-return venture enterpr…