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Dictionary by pitch.dog
Valuation & conversion mechanics · Working

Dissolution event

Also called: dissolution

ELI5

The company closes or liquidates.

Used in conversation

“The SAFE ranks behind creditors in a dissolution event.”

Definition

A winding-up, insolvency or cessation event addressed by a financing instrument.

Here “Dissolution event” means: A winding-up, insolvency or cessation event addressed by a financing instrument.

Pitch context

You will see “Dissolution event” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches valuation & conversion mechanics.

Why it matters: In valuation & conversion mechanics, 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 · 5

Direct term-level sources and supporting source families.