The Sibyl Un-Glossary of VC Terms
Some terms have been defined in many places, yet misinterpretations of them keep appearing in decks. At Sibyl, we’re doing the un-glossary instead: starting with what a term is often mistaken for, then working toward what it actually means.
- Accredited investorAn accredited investor is someone who meets specific income, net worth, or professional criteria under U.S. securities law, allowing them to invest in private securities offerings.
- AdvisersAdvisers are individuals or firms brought in to provide guidance, introductions, or credibility; their value depends on what they actually do for the company rather than their title or name recognition.
- Angel investorAn angel investor is an individual who invests their own money into very early-stage companies, often before institutional venture capital, in exchange for equity or convertible instruments.
- Market capMarket cap, or market capitalization, is the total public market value of a company's outstanding equity, calculated by multiplying its current share price by the number of shares outstanding.
- Market sizeThe total annual revenue opportunity available to all providers of a defined product or service within a specified customer segment, use case, and geography.
- MoatA moat is a durable competitive advantage that makes it hard for competitors to copy or erode the economics that make your business valuable.
- SAMSAM, or serviceable addressable market, is the portion of the total market your product can actually serve today, given its specific use case, customer segment, and geography.
- Seed roundA seed round is the first institutional capital a startup raises to prove its product and find early traction, before a Series A — not just the first money in.
- SOMSOM, or serviceable obtainable market, is the slice of your SAM you can realistically win in the near term given competition, distribution, and resources — not a shrunken TAM picked for the deck.