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

Follow-on investment

Also called: follow-on

ELI5

An existing investor invests again.

Used in conversation

“The fund reserved capital for follow-on investment.”

Definition

An additional investment by an existing investor in a later financing.

Here “Follow-on investment” means: An additional investment by an existing investor in a later financing.

Pitch context

You will see “Follow-on investment” 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.