SkillMedev Fundraise Closing Mechanics
A term sheet is a non-binding promise; rounds still die between signing and funding. The home stretch is where founder attention drains, diligence surprises surface, and momentum quietly leaks. This skill drives the deal to wired funds.
When to use this skill
Use it the moment a term sheet is signed (and [[term-sheet-negotiation]] is done), running against the data room from [[data-room-builder]].
The path from signed term sheet to cash
- Confirmatory diligence - the investor verifies what you claimed: metrics, contracts, cap table, IP, legal. Your prepared data room makes this days, not weeks. Surprises here re-open price; there should be none if [[fundraise-readiness-audit]] was honest.
- Legal documentation - counsel drafts the definitive docs: stock purchase agreement, amended charter, investor rights agreement, voting agreement, board consents. Terms flow from the term sheet; the fights should already be over.
- Signatures and conditions - satisfy closing conditions (e.g. IP assignments, board/stockholder approvals), then countersign.
- Wire and confirmation - funds hit the account; shares issue; the cap table updates ([[cap-table-manager]]).
Keep momentum through the stretch
- Treat closing like the final stage of the pipeline, not a victory lap. Same-day responses on diligence requests keep the clock from slipping.
- Designate one owner (often the lead founder + lawyer) for every open item with a date. A dropped IP assignment can stall a wire for weeks.
- Hold the data room reconciled and current; a number that drifted since the term sheet invites a re-trade.
- For a multi-party round, the lead closes first; collect angels/smaller checks on the lead's papers to avoid herding everyone in parallel.
Watch for re-trades
- A "discovered" problem in diligence is sometimes a genuine issue and sometimes a lever to re-price. Knowing your data room cold lets you tell the difference and hold the line.
- If the company's metrics genuinely changed, get ahead of it honestly before they find it.
After the wire
- Issue shares and update the cap table of record.
- Send a closing announcement and your first post-raise investor update ([[investor-update-writer]]); set the board cadence ([[board-management]]).
- File and organize all executed docs into the data room for the next round.
Anti-patterns
- Going quiet after the term sheet and letting diligence drift for weeks.
- A diligence surprise that contradicts the deck and re-opens price.
- No single owner for closing conditions, so items rot.
- Forgetting that the round is not done until the money is in the bank.
Deliverable
A closing checklist from signed term sheet to wired funds - diligence requests with owners and dates, the definitive-docs list, closing conditions to satisfy, and the post-close actions (share issuance, cap-table update, first update, board setup) - built to keep the deal moving to cash.