RGM® Glossary · Venture Capital
Growth Glossary — Definition
SHT AMERICAN-WATERAmerican Waterfall
Deal-by-deal carry distribution. A working definition from the RGM marketing glossary.
Deal-by-deal carry distribution.
- Term
- American Waterfall
- Field
- Venture Capital
- Category
- Capital & Investing
Common mistakes
Worth a slow read.Teams slip on American Waterfall in four familiar ways. Each makes a soft assumption look like a precise number.
- One blanket rule. Applying American Waterfall the same way everywhere. Split it by audience, channel, and business model.
- No context. Reporting American Waterfall with no baseline. A bare number cannot be judged.
- Chasing the word. Optimizing American Waterfall for its own sake. Check it tracks a real outcome.
- Raw benchmarks. Stacking American Waterfall against rivals blind. Normalize for margin, pricing, and sales cycle.
Common questions
What is American Waterfall?
Deal-by-deal carry distribution. Agree the scope of American Waterfall before the planning starts.
What makes American Waterfall worth knowing?
American Waterfall matters because vague vocabulary breaks strategy. A precise, shared definition keeps a team aligned.
How do teams use American Waterfall?
American Waterfall supports a real choice: where money goes, what gets measured, which option wins. The a PE-owned DTC brand case traces it.
What is the most common mistake with American Waterfall?
Chasing American Waterfall as a goal and benchmarking it raw. Both bury the real trade-off underneath.
- What is American Waterfall?
- Deal-by-deal carry distribution. Agree the scope of American Waterfall before the planning starts.
- What makes American Waterfall worth knowing?
- American Waterfall matters because vague vocabulary breaks strategy. A precise, shared definition keeps a team aligned.
- How do teams use American Waterfall?
- American Waterfall supports a real choice: where money goes, what gets measured, which option wins. The a PE-owned DTC brand case traces it.