{"id":10351,"date":"2026-10-22T18:38:58","date_gmt":"2026-10-22T16:38:58","guid":{"rendered":"https:\/\/www.innowerft.com\/?p=10351"},"modified":"2026-10-22T18:39:21","modified_gmt":"2026-10-22T16:39:21","slug":"closing-of-a-financing-round","status":"publish","type":"post","link":"https:\/\/www.innowerft.com\/en\/closing-abschluss-einer-finanzierungsrunde\/","title":{"rendered":"What is a closing?"},"content":{"rendered":"

Closing<\/strong> refers to the legal and financial completion of a funding round. This involves implementing the previously agreed investment terms, so that investors receive the agreed stake and the start-up is entitled to the pledged capital or the agreed payments.<\/p>\n

The closing is an important milestone in the fundraising process. It marks the transition from contract negotiations to the actual execution of the financing.<\/p>\n

 <\/p>\n

How does the closing of a funding round work?<\/h2>\n

Once the start-up and the investors have agreed on the key terms of the investment, the legal and organisational requirements for the transaction must be met.<\/p>\n

Typical steps include:<\/p>\n

    \n
  1. Finalising contracts:<\/strong> The agreed investment terms are being set out in legal terms.<\/li>\n
  2. Signing contracts:<\/strong> The parties concerned shall enter into the necessary agreements.<\/li>\n
  3. Meet the requirements:<\/strong> Any outstanding conditions, supporting documents or approvals are being obtained.<\/li>\n
  4. Putting participation into practice:<\/strong> New shares are created, for example, through a capital increase.<\/li>\n
  5. Provide capital:<\/strong> The agreed investment amounts will be paid in accordance with the terms of the contract.<\/li>\n
  6. Documenting shareholdings:<\/strong> The cap table will be updated to reflect the new ownership structure.<\/li>\n<\/ol>\n

    The exact order depends on the legal form, the financing structure and the contractual arrangements.<\/p>\n

     <\/p>\n

    What is the difference between signing and closing?<\/h2>\n

    The two terms refer to different stages within a financing process.<\/p>\n

    Signing<\/strong> describes the signing of the binding investment agreements. This formalises the agreed rights and obligations in law.<\/p>\n

    Closing<\/strong> refers, by contrast, to the subsequent completion of the transaction once the agreed conditions have been met.<\/p>\n

    In the case of German GmbHs, there may be a gap of several weeks between the two steps, for example because a capital increase must first be entered in the commercial register.<\/p>\n

    However, in certain transactions, the signing and closing may take place at the same time.<\/p>\n

     <\/p>\n

    Example: Securing start-up funding<\/h2>\n

    A B2B start-up is looking to raise 500,000 euros from investors in order to further develop its software and expand its sales operations.<\/p>\n

    Once both sides have agreed on the terms of the investment, the necessary contracts will be drawn up and signed.<\/p>\n

    A capital increase will be carried out to facilitate the new investors\u2019 participation. The new shares will be issued once the statutory and contractual requirements have been met.<\/p>\n

    The agreed payments are then made in accordance with the terms of the contract, and the ownership structure is documented.<\/p>\n

    The start-up can now use the capital for its planned growth initiatives as soon as the funds are actually available.<\/p>\n

     <\/p>\n

    Which documents are important at closing?<\/h2>\n

    Different documents are required depending on the funding round.<\/p>\n

    These often include:<\/p>\n