Milestone Payment

Définition

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.

Comment cela se présente dans le financement

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.

Questions fréquemment posées

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.

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