Founder: One of the first members of the company, who usually works for no salary until the company has raised funding. Works for stock or becomes an owner by default.

First round of funding (second round, etc.): The first money a startup is able to raise professionally, from professional investors such as Venture Capital firms, high net worth individuals and sometimes corporations. Each round of funding reduces the risk (in theory) for investors. Different kinds of investors will invest in different rounds. Although in theory there is no limit to the number of rounds, one rarely hears about more than 4 rounds of investment.

VC: Venture capitalist. Professional investors who specialize in startup companies, particularly hi-tech (electronics, biotech, etc.) Most of the major electronics and dot.com VCs are in Silicon Valley. The first VC in Startup.com was Kleiner Perkins Caulfield Byers and Doerr.

IPO: Initial Public Offering. The listing of a company's stock on a public market, such as the NASDAQ or the New York Stock Exchange. Anyone can buy the stock and the investor has liquidity (can sell his stock for cash).

CEO: Chief Executive Officer. The Executive with the ultimate financial and strategic decision-making authority in a company. "Co-CEOs" are rare.

Board of Directors: Individuals, including founders and representatives of the investors, who oversee and guide a company's strategy. Elects the CEO and can demand a change in leadership/strategy.

Shares (as in, "I have shares in the company"): A share represents ownership relative to a total number of shares issued. Each round of financing entails issuance of new shares. Dilution is when the value of each individual share decreases because more shares have been issued without a corresponding increase in valuation.

Valuation: The net worth of the company as determined by the most recent value and number of shares (that is, total number of shares issued x the most recent price per share).