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Tranche

As part of the investment agreement concluded between the startup and the investor, funds are often not paid at once, but in predetermined parts (tranches), the payment of which depends on the fulfillment of predetermined conditions (milestones)  by the startup.

Tranches (payments of subsequent amounts under one investment agreement) are not the same as investment rounds (sequence of several separate investment agreements) or follow-on investment (signing further investment agreements from an investor who has made a previous investment in the company).