Milestone-Based Financing
Definition
Milestone-based financing releases capital in tranches tied to agreed achievements, such as clinical results, product launches, or revenue targets.
How it comes up in fundraising
Common in biotech and deep tech where capital needs are large and binary risks are explicit; less common in software, where full upfront rounds dominate.
Frequently asked questions
Are tranched rounds founder-friendly?
They reduce dilution if milestones hit, but give investors leverage at each gate; negotiate objective, achievable triggers.
Why frame a raise around milestones anyway?
Even without tranches, “this capital reaches these milestones” is the strongest sizing logic a founder can present.
Round Funded resources
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