Rolling Close
Definition
Rolling Close: A rolling close allows a startup to accept investments incrementally as they come in, rather than waiting for a single closing date. Common with SAFEs and convertible notes, rolling closes provide flexibility to start using capital immediately while continuing to fundraise. Each investment closes independently on the same terms.
Example Usage
“Our SAFE round used rolling closes. We accepted the first $200K to start building while continuing to raise. Total round closed at $750K over 2 months.”
Common Misconceptions
Related Terms
SAFE
A SAFE (Simple Agreement for Future Equity) is an investment contract that gives investors the right to receive equity in a future priced round. Creat...
Convertible Note
A convertible note is a form of short-term debt that converts into equity during a future financing round. It includes interest, a maturity date, and...
Seed Round
A seed round is typically the first official equity funding stage for a startup, used to develop the product, hire initial team members, and validate...
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