Definition
IPO
Initial public offering, taking a private company onto public markets.
From the episode “The $50 Million Exit Trap Nobody Warns Founders About”Hear it on the podcast1 episode
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Related terms in Startups & Fundraising
IncumbentThe contractor currently holding a government contract. Understanding incumbent strength — their relationship with the agency, contract lineage, and past performance — is central to the P-Win calculation.Inflection PointThe moment growth accelerates, often triggering operational and spending mistakes.IP AcquisitionWhen a founder winds down a company but retains ownership of the technology they built — enabling a fresh start with proven assets, no team overhead, and full control over direction.IP assignmentTransferring intellectual property to the company so a founder cannot leave and start a competitor with it.Liquidity eventAny transaction that converts founder equity into cash.LOILetter of intent, the early signal Nick groveled for to prove demand.Loss RatioThe percentage of investments in a fund's portfolio that return zero capital. Seed funds run high loss ratios; growth funds run low ones.LP Interest (Limited Partner Interest)A proportional ownership stake in a limited partnership fund, entitling the holder to a share of the fund's assets and returns without direct management authority over the underlying investments. In Collective Liquidity's exchange fund, contributors receive LP interests representing their proportional share of the diversified pool of private company shares. Unlike direct stock ownership, LP interests in a diversified fund provide quarterly liquidity (the fund provides a mechanism to borrow against or exit LP interest), can be used as collateral for lower-cost loans than single-stock concentration would allow, and enable access to wealth management strategies like donor-advised fund contributions that are impractical with illiquid single-company shares. The LP interest is the instrument that converts illiquid, concentrated private company equity into a more flexible, manageable financial asset.