DEFINITION of 'Traunch'

One of a series of fund allotments earmarked for a specific purpose, such as a financing round in a start-up. Traunches are used by venture capital firms as a means of minimizing risk. Some experts believe "traunch" is a misspelling of "tranche", which means a slice or portion, and is used to describe instruments such as mortgage-backed securities that can be sliced into smaller pieces for sale to investors.


For example, a development-stage company that has sought venture capital funding may initially receive a $2 million traunch out of a $5 million financing round, with the balance to be received after a month.

  1. Venture Capital

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  3. Seed Capital

    The initial capital used to start a business. Seed capital often ...
  4. Series A Financing

    The first round of financing undergone for a new business venture ...
  5. Down Round

    A round of financing where investors purchase stock from a company ...
  6. Angel Investor

    An investor who provides financial backing for small startups ...
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