Business Pitch Dictionary by pitch.dog
Fundraising process & investor pipeline · Working

First close

Also called: initial close

ELI5

The round completes for the first group of investors.

Used in conversation

“The company extended the round after the first close.”

Definition

The first legal completion of a financing, after which some committed capital is funded.

Here “First close” means: The first legal completion of a financing, after which some committed capital is funded.

Pitch context

You will see “First close” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches fundraising process & investor pipeline.

Why it matters: In fundraising process & investor pipeline, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 6

Direct term-level sources and supporting source families.