Description
Calculate a milestone tranche’s current authorization, new release and holdback under a supplied achievement flag.
Startup cash budgets distinguish available funds, committed outlays, restricted balances and expected receipts. Subtracting commitments can create a negative balance even while total cash remains positive; dividing by burn assumes a constant spending rate.
Calculate a milestone tranche’s current authorization, new release and holdback under a supplied achievement flag.
When to use this tool
Use Venture Milestone Tranche Release Term when checking a supplied cash commitment, balance or runway contribution.
How to use the tool and how it works
- Enter tranche, achieved, holdbackFraction, previouslyReleased. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read authorized, releaseNow, heldBack. Use the output convention below.
Require nonnegative tranche and previouslyReleased <= tranche and holdbackFraction in [0,1]. If achieved, authorized = tranche*(1-holdbackFraction) and heldBack = tranche*holdbackFraction; otherwise authorized = 0 and heldBack = tranche. releaseNow = max(0,authorized-previouslyReleased), using one currency unit.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| tranche | Tranche | Required. Finite number; minimum 0. |
| achieved | Achieved | Required. Boolean. |
| holdbackFraction | Holdback Fraction | Required. Finite number; minimum 0; maximum 1. |
| previouslyReleased | Previously Released | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| authorized | Authorized | Required. Finite number. |
| releaseNow | Release Now | Required. Finite number. |
| heldBack | Held Back | Required. Finite number. |
{
"input": {
"tranche": 100000,
"achieved": true,
"holdbackFraction": 0.1,
"previouslyReleased": 20000
},
"output": {
"authorized": 90000,
"releaseNow": 70000,
"heldBack": 10000
}
}Limitations and assumptions
- Previously released funds are not reversed when the milestone is false or authorization falls. The supplied milestone and holdback do not establish contractual payment rights.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a dated cashflow forecast and the actual funding or payment terms when timing, changing burn or enforceability matters.
References
Similar or alternative tools
- Startup Sales Cycle Cash Gap Term
Estimate one sales cycle’s working-capital gap after a customer deposit and acquisition spending.
- Startup Runway Committed Cash Adjustment
Calculate constant-burn cash runway after restricted funds and committed payments, preserving a signed shortfall.