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.