Culture is a common buzz word among new and established organizations. It’s increasingly important in a startup to motivate employees to work the extra hours without the added benefits. It’s also the factor many companies rely on to attract and retain strong talent. But strangely enough some of the most successful companies don’t even consider culture, but rather stumble into it.

To help those legalese challenged, we took the 10 most common terms found in a typical Venture Capital (VC) term sheet and tried to explain them very simply.  Many of these terms can take on many different meanings, though, so we tried to use the most typical definitions.

In a conversation with a friend of mine we discussed the importance of ambition and passion in our lives. As a current or aspiring entrepreneur you are probably in frequent contact with people that rely on one of these qualities. But in your quest for “the next big thing” did you ever pause to think which is superior?