Finance & Moneyintermediate
Funding Tranche
Definition
A portion of an investment that is released in stages, often when the company hits agreed milestones.
Why it matters
Tranches let investors lower their risk by funding in steps, which means you must hit targets to unlock the next chunk.
Example
An investor commits £1m in two tranches, releasing the second only after the company reaches £500k revenue.
Related terms
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