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

Handshake deal

Also called: handshake commitment

ELI5

The parties say they have agreed, but paperwork is not complete.

Used in conversation

“Document the handshake deal immediately and do not overstate certainty.”

Definition

Startup shorthand for an agreed investment amount and key terms before full documents are executed; legal effect depends on facts and jurisdiction.

Here “Handshake deal” means: Startup shorthand for an agreed investment amount and key terms before full documents are executed; legal effect depends on facts and jurisdiction.

Pitch context

You will see “Handshake deal” 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.