Archives Glossary Terms: 155 terms

ESG Compliance Reports

ESG (Environmental, Social, and Governance) Compliance Reports in a startup refer to structured documents that track and disclose the company’s efforts in sustainabilityEnvironmental Permits, Licenses, and Certifications in a startup refer to the necessary legal approvals and regulatory compliance requirements…

Ethical Sourcing Policies

Ethical Sourcing PoliciesEthical Sourcing Policies in a Startup refer to structured guidelines that ensure the company procures materials, products, and services in a socially responsible, environmentally sustainable, and ethical manner. These policies protect workers’ rights, promote fair trade, and reduce…

EU AI Act

The European Union Artificial Intelligence Act (EU AI Act) aims to regulate AI technologies across the EU. Understanding this legislation is crucial for startups selling AI products for compliance and strategic planning.

The Act categorizes AI systems into four risk levels: unacceptable, high, limited, and minimal risk. Startups must assess their products accordingly. High-risk systems face stringent requirements, including risk management, data governance, transparency, and human oversight. Non-compliance can result in fines up to €30 million or 6% of annual turnover.

Startups may experience increased compliance costs but can gain a competitive advantage by aligning with ethical AI practices.

Exit Plan

‘An Exit Plan for a startup refers to the strategy for how founders and investors will eventually leave or transition out of the business while maximizing value. This plan outlines the possible exit strategies, financial implications, and operational considerations involved…