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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – The Benefit of Investing in Tranches
Description: The Benefit of Investing in Tranches Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Tranching the investment means breaking it down into tranches or rounds. Tranche comes from the French word meaning slice. Investors find it advantageous to break their investment into rounds. In the angel world, many investors break their allocation to a startup into two rounds. The first round goes in at the beginning of the investor engagement. If all goes well, then the investor puts in the second round. If things don’t go well, then...