Glossary
Milestone-Based Investment
An investment structure where capital tranches are released against specific milestones — a sub-category of tranche investing common in deeptech and biotech.
By Amit Tyagi, Fitoor Capital · AletheiaAI Glossary
Definition
Milestone-Based Investment is a financing structure where the total committed capital is released in defined tranches against specific milestones — revenue, product, regulatory, hiring, or partnership-based.
Milestones must be objectively measurable, time-bound, and within founder control. Subjective or external-dependent milestones create renegotiation friction.
India Context
Common in Indian deeptech (regulatory approvals, prototype milestones), biotech (clinical trial phases), and capital-intensive consumer (manufacturing plant commissioning). Less common in SaaS where revenue milestones are continuous rather than discrete.
Example
A medical device startup's ₹15Cr Series A is structured: ₹6Cr at closing, ₹4Cr at CDSCO approval (expected 6-9 months), ₹5Cr at first ₹50L commercial revenue (expected 12-18 months). Each milestone is objectively measurable and within founder control.
Frequently Asked Questions
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