Investments, like the ocean, can come in waves, but that doesn’t mean they should.
A “tranched investment” is an investment that is split into one or more parts. In order for the company to receive the latter parts of a tranched investment, it usually has to achieve goals or objectives set as part of the conditions of investment. A typical example of a tranche is: the investors give you half the investment amount right now, and half the investment when your revenues reach ‘x’.
To read the original article: 7 reasons for entrepreneurs to avoid tranched investments | VentureBeat
