The Rolling Close

The Rolling Close from The Startup Garage
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A rolling close is when you raise capital, usually from several different investors, over a period of time as opposed to all at once.  The initial investor(s) agrees to a rolling close (i.e. a 3 month window) during which other investors can invest at the same terms.  Whether it’s a matter of logistics for investors or you need additional investors to raise the full amount of capital, the rolling close allows you to continually identify and pitch potential investors while closing with investors that are ready to commit.

The duration of most rolling closes is anywhere between 30-90 days, though your startup can push for however long it needs.  Rolling closes are certainly more favorable to the startup and investors will push back on longer rolling close time frames as it allows potential investors to hedge or get the same deal long after the initial close.  Additionally, some investors may see rolling closes as an opportunity to wait and see whether they want to invest (they may want to see if you are successful at attracting other investors, or they may want to see how the business fares over the next several months).  Be sure to use this tactic strategically to give yourself the best chance at raising the funding needed to take your business to the next level.

Whether you have a question about the Rolling Close or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.