IFO4
Loading...Equity capital provided by professional investors to early-stage companies with high expected growth, in exchange for preferred stock with negotiated rights. Venture capital terms typically include liquidation preferences, anti-dilution protection, board representation, and information rights. The federation requires every venture round to be disclosed with the term sheet summary, the post-money valuation, the effective dilution, and any unusual provisions footnoted under MEV-Annex:4.1. Side letters and most-favoured-nation provisions are disclosed at the same level of detail as the main agreement.
The American Research and Development Corporation of 1946 is generally credited as the first institutional venture vehicle; the modern partnership form was settled by the 1970s.
Federation members report each venture round within thirty days of close. The disclosure includes term sheet summary, full ratchet and anti-dilution mechanics, and any side letters. Misstatement of post-money valuation or effective dilution is a Tier-1 conduct violation.
@misc{ifo4_glossary_venture_capital,
title = {{Venture Capital}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{venture-capital}}},
year = {2026},
url = {https://ifo4.org/glossary/venture-capital},
note = {Category: Capital; key: VentureCapital}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.