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Dictionary by pitch.dog
Fundraising process & investor pipeline · Working

Conditions precedent

Also called: CPs

ELI5

Required steps before the deal can complete.

Used in conversation

“Counsel is tracking the conditions precedent.”

Definition

Contractual conditions that must occur before specified obligations or closing take effect.

Here “Conditions precedent” means: Contractual conditions that must occur before specified obligations or closing take effect.

Pitch context

You will see “Conditions precedent” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches fundraising process & investor pipeline.

Why it matters: In fundraising process & investor pipeline, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 6

Direct term-level sources and supporting source families.