http://cdixon.org/2009/08/15/the-problem-with-tranched-vc-investments/ http://cdixon.org/2009/08/15/the-problem-with-tranched-vc-in... Basically, it's "normal"

http://cdixon.org/2009/08/15/the-problem-with-tranched-vc-investments/ http://cdixon.org/2009/08/15/the-problem-with-tranched-vc-in... Basically, it's "normal" but not really great for you. More about downside protection for the VC, so they can cut their losses. Also as you reach these milestones, your company should be worth more (since you created value), but by doing this the VC sets the price for the future milestone based investment tranches at the lowest price (zero milestones reached).