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

Undersubscribed

Also called: under-subscribed

ELI5

The round has less investor demand than planned.

Used in conversation

“The undersubscribed round may need a lower target or bridge.”

Definition

Describes a round or offering in which investor commitments fall short of the target amount.

Here “Undersubscribed” means: Describes a round or offering in which investor commitments fall short of the target amount.

Pitch context

You will see “Undersubscribed” 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.