Upside . . .
is the potential profit an investor hopes to receive
from his investment under ideal circumstances. It is what the venture
capitalist measures against the downside when evaluating a company.
The greater the upside and the more likely it will be obtained, the
less the investor will require in return for his investment.
When businessmen speak of "dollar signs dancing
in their eyes" they are envisioning the upside. For venture
investors, the upside represents the potential for their shares to
appreciate significantly. This can be achieved by company growth and
success and can be supplemented by the market increasing the stock’s
P/E ratio. See: Downside,
P/E,
Price-Earnings Ratio,
Pricing,
ROI
(Return on Investment), Vested Stock,
Vesting Schedules.