In New Mexico, there are several federal government laboratories and universities that create new technologies. Sometimes these technologies have commercial uses. Lab employees are allowed to use the technology as the basis for their own start-up ventures.

A business that is typically at or near breakeven in terms of operating expense to revenue and is poised to grow quickly.

Refers to growth that comes from adding new offices or manufacturing plants, moving beyond previously defined geographical borders or adding new products or business lines. It does not refer to growth that only comes from increased revenue.

The way an equity investor (See Angel Investor, Venture Capital) plans to cash-out of the company in which they invest so they can realize relatively short-term profits rather than waiting for the company to make substantial profits from sales revenue. An exit strategy could be: an IPO (Initial Public Offering) where a company goes public and shares now have value on the open market; or the sale of the company to a public or private entity.

An established business has measurable revenue history for at least two years.

Equity investment is the provision of capital to a firm in return for partial ownership of that firm. Investments are typically made by venture capital firms or angel investors. Equity investors are not looking for repayment in the way that a loan company expects. Instead, they are looking for an exit strategy whereby they can recoup their investment with a good profit. (See Exit strategy)

One who assumes the financial risk of the initiation, operation, and management of a given business or undertaking.

An early stage business is similar to a start-up. However, when the term “early-stage” is used, it typically means that the business is in its early operational stage, but has no or little revenue.

A security which can be exchanged for a specified amount of another, related security, at the option of the issuer and/or the holder. In most cases, a convertible debt security is converted to equity or stock.

An asset pledged as security to ensure payment or performance of an obligation. In bank lending, it is generally something of value owned by the borrower. If the borrower defaults, the asset pledged may be taken and sold by the lender to fulfill completion of the original loan contract.