Milestone Funding
Definition
Milestone Funding is a funding arrangement where funds are released to the startup as it achieves specific, pre-agreed milestones.
Benefits
Milestone funding ensures startups stay on track, encourages accountability, and reduces financial risk for investors.
Frequently Asked Questions
What is milestone-based funding? Milestone-based funding is when funds are given to a startup as it reaches specific, pre-determined milestones.
What is milestone-based funding? Milestone-based funding is when funds are given to a startup as it reaches specific, pre-determined milestones.
Who uses milestone funding? Milestone funding is commonly used by venture capital firms, angel investors, and accelerators to ensure accountability and progress.
Summary
Milestone funding is a practical approach to investing in startups, ensuring that funds are released as key goals are achieved, promoting progress and reducing risk.