Rolling Closes

Intermediate πŸš€ Startup / VC

Definition

Taking investor money in tranches rather than waiting for a formal funding round close, a practice that sounds efficient but often indicates the fundraising process isn't actually complete.

Example Usage

We did rolling closes for our Series B, taking $5M from the lead investor in month one and $8M from others over the next three months, a process that kept us in constant fundraising mode.

Origin

From financial transactions and capital deployment terminology

Fun Fact

Rolling closes extend the fundraising cycle and increase founder distraction, but feel more efficient than they actually are

Source: Venture capital funding process terminology

Related Terms

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