BP, or BIPS. They refer to a unit of measure that’s used to calculate interest rates and other types of percentages. Basically, one basis point is equal to 1/100th of 1%, which would turn out as 0.01%.
A basis point (bp), or “bip,” is one-hundredth of 1%, or 0.01%. In startups, you might refer to an equity grant for an employee in terms of its number of basis points (e.g. 50bp) rather than 0.5%. Need help with other finance or startup questions?
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