PrimetimeGeek independent tech news · est. 2009
Seed fund Marlowe Bay switches to milestone tranches
The cheque is the same size; it arrives in three pieces.
Marlowe Bay told founders it will release seed cheques in three tranches tied to named milestones rather than in one payment at close.
Why it matters: tranching moves risk from the fund to the founder without changing the headline number a company can announce. Anyone comparing two seed rounds by size alone is now comparing two different instruments.
Sources
- Fund letter to founders