Closing Conditions
Definition
The requirements that must be satisfied before an investment round can close. Financial closing conditions typically include confirmation that the company's financial position as represented remains accurate, that no material adverse change has occurred, that the cap table as represented is accurate, and that all financial representations made by the company are warranted.
Common Misapplication
The most common misapplication is treating closing conditions as administrative checkboxes rather than as substantive confirmations. A material adverse change that occurs after a term sheet is signed but before closing, and is not disclosed to the investor, may give the investor the right to renegotiate or withdraw.
FFI Standard Reference
This term is defined and applied in Book 5, Section 5.4: The Financial Due Diligence Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Closing Conditions. https://ffistandard.org/glossary/closing-conditions/. 2026.