(1) "Follow-on investment" means any investment in a Vermont firm following the initial investment.

(2) "Fund manager" means the investment management firm responsible for creating the fund, securing capital commitments, and implementing the fund's investment strategy, consistent with the requirements of this section. The fund manager shall be paid a fee that reflects a percentage of the fund's capital under management and a performance-fee share based on the fund's economic performance, as determined by the Authority.

(3) "Seed capital" means first, nonfamily, nonfounder investment in the form of equity or convertible securities issued by a firm that had, in the 12 months preceding the date of the funding commitment, annual gross sales of less than $3,000,000.00. (Added 2009, No. 54, § 25, eff. June 1, 2009.)