Closing

Hello startup enthusiasts,

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We’ve reached the final step in our investment journey: closing. Over the past few months, we’ve unpacked everything from term sheets to liability clauses, and now it’s time to bring it all together.

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This is the last newsletter in our investment series, but we’re already working on something new. A fresh series is coming your way in september, and we can’t wait to share what’s next.

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Let’s wrap this one up properly, with everything you need to know about closing your deal with confidence.

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What’s closing?

Closing is the moment your investment becomes real. It’s when the money lands, shares are issued, and everything is officially locked in.

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It’s easy to mix up signing and closing, but they’re not necessarily the same. Signing happens first, when everyone signs the key documents. But nothing’s final until closing. That’s when all conditions for the release of funds are met and the transaction goes through.

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Between signing and closing, you’ll need to tick off a list of conditions precedent. These might include board or shareholder approvals, an updated cap table, investor consents, regulatory filings, or fixing any compliance issues. Once everything’s ready, the funds move and the deal is done.

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Why does it matter?

Signing might feel like the finish line, but closing is what makes it real. If any condition precedent is missed or delayed, your deal can stall or even fall apart.

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Delays can slow down hiring, product plans, and your relationship with investors. You’ll likely have a list of closing tasks with tight deadlines, so make sure everyone knows who’s handling what and when. Prep early, stay close to your legal and finance teams, and keep things moving. A smooth closing keeps momentum up and sets the tone for what’s next.

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Dos and don’ts

Here’s how to make the final part work for you:

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Dos

• communicate early, share progress often, and align expectations to avoid last-minute surprises
• leave enough time between signing and closing to cover approvals and final checks
• keep every condition precedent clear, realistic, and backed by a fallback like a waiver or cure period

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Don'ts

• overpromise or agree on conditions precedent you can’t meet or don’t control
• rush through closing prep, small oversights here can cause big delays
• underestimate time-sensitive filings or post-closing steps

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In a nutshell

Closing might sound like the easiest step. The deal’s signed, the terms are agreed, what’s left, right? But this is where everything comes together, and small gaps can still cause big delays. It’s when the money moves, shares are issued, and the deal becomes real. Done well, it keeps momentum up. If not, it can stall everything you’ve built.

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Need help reviewing your closing checklist or getting your documents ready? Reach out to our team, we’ve got your back. And for more startup-smart legal tips, follow us on LinkedIn.

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And don’t forget, something new is on the way. We’ll keep you posted and be back with a fresh series at the end of september!

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