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.