Business Pitch Dictionary by pitch.dog
Funding rounds & stages · Specialist

Rescue financing

Also called: emergency financing

ELI5

Urgent funding to keep a struggling company alive.

Used in conversation

“Rescue financing can heavily dilute existing holders.”

Definition

Capital provided to a distressed company to prevent insolvency or preserve value, often on protective terms.

Here “Rescue financing” means: Capital provided to a distressed company to prevent insolvency or preserve value, often on protective terms.

Pitch context

You will see “Rescue financing” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding rounds & stages.

Why it matters: In funding rounds & stages, 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 · 8

Direct term-level sources and supporting source families.