Startup Funding Espresso -- The Rolling Close
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Today we\u2019ll talk about a rolling close. Closing a fundraising round can be challenging given the schedules of the investors. A rolling close is used in a deal that is open to investors who can sign the documents and send in their money on their own schedule.\xa0\xa0 This allows the startup to take funding a little at a time throughout the fundraise campaign rather than trying to capture all the checks and signed documents in one go. This often applies to a convertible note in which the startup raises funding over an extended period of time using the same note. It works even if the round does not meet its total fundraise objective in which case the company will have to move forward with less funds. If there\u2019s a minimum amount that must be invested to launch a company, then it\u2019s better to use a single close method. That way the investors have assurance the company has raised enough funding to achieve the objective.\xa0\xa0 One variation on this is an initial closing with a rolling close following. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group Music courtesy of