Milestone Payment
Definition
A milestone payment is money released only after a defined achievement is met, such as a product launch, a regulatory approval, a revenue target, or a signed customer, rather than paid upfront in full.
Wie es im Fundraising vorkommt
Milestone payments show up across fundraising and M&A: investors tranche a round against milestones, acquirers structure earnouts around them, and grant programs release non-dilutive funding the same way.
Häufig gestellte Fragen
How is a milestone payment different from a tranche?
A tranche is a portion of an already-committed financing released on milestones. A milestone payment can also apply outside financing, for example in a partnership, license, or acquisition earnout.
What makes a milestone payment structure founder-friendly?
Objective, measurable milestones that are mostly within the founder’s control, such as a shipped feature, rather than a market condition outside anyone’s control.
Verwandte Begriffe
Setzen Sie diesen Begriff ein
Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.
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