Tranche
Content
Definition
A Tranche is a portion of investment delivered to a startup at different stages, based on meeting previously agreed milestones, facilitating phased financing aligned with progress and achievements.
Usage and Context
A tranche is a part of investment given to a startup based on achieving certain goals.
Frequently asked questions
- What is a tranche in investment? A tranche is a part of investment funds released based on goals or agreed stages.
- What are tranches in VC? Tranches in VC (Venture Capital) are portions of investment funds released to a startup at different stages, based on achieving specific milestones.
- What is a tranche model? A tranche model splits an investment or debt into different parts, each with its own risk and return traits, often used in structured finance.
Benefits
A tranche enables milestone-based funding, lowering risk for investors.
Conclusion
A tranche enables milestone-based funding, reducing risk for investors.
