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VC Beast

Fundraising

Closing Mechanics

The legal and administrative process of finalizing a funding round, including signing documents and wiring funds.

Closing mechanics encompass all the steps between signing a term sheet and receiving funds: finalizing legal documents, completing conditions precedent, obtaining board approvals, executing signature pages, and wire transfers. Closings can be simultaneous or rolling.

In Practice

The Series A had a rolling close — the lead investor wired $8M at first close, with two follow-on investors adding $4M at a second close 30 days later.

Why It Matters

Understanding closing mechanics prevents surprises. Deals can fall apart between term sheet and close, and the timeline affects runway planning.

VC Beast Take

A term sheet is a letter of intent, not a check. The distance between signed term sheet and money in the bank has killed more startups than most people realize.

Related Concepts

Term Sheet →First Close →Round →

Further Reading

What Happens to Your Stock Options If Your Startup Gets Acquired

Acquisitions are where startup equity either pays off or evaporates. Here's how acceleration clauses, liquidation preferences, and deal structure determine whether employees see real money.

Related Guides

The Complete Guide to Startup Fundraising

A step-by-step guide to raising capital for your startup — from deciding when to raise, to closing your round and everything between. Written for founders, by people who've seen both sides.

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