Definition of Tranche

Tranche is a venture investing term that refers to funding that is delivered as a partial round.
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The first funding round is the the first tranche, and there can be as many tranches as investors and the funded company deem appropriate. All tranches in a funding round are generally under the same terms and conditions. Occasionally, those who fund the first tranche receive a kicker of some sort, e.g. warrants, in consideration of the additional risk that they are taking.

Tranche References On This Site

These Gaebler.com articles mention this glossary term:

• Collateralized Debt Obligations - Investors of the equity and mezzanine tranches of CDOs get a higher interest rate in their investment than investors in the senior tranche because the former two carry a much greater risk...
• Collateralized Debt Obligations - Investors of the equity and mezzanine tranches of CDOs get a higher interest rate in their investment than investors in the senior tranche because the former two carry a much greater risk...