Settling a Funding Close

Settlement is Step 2 of the funding close process -- confirming that all the capital in the close has been received and locking the investments. This is a significant event: once settled, the investments in the close are finalized and the capital is committed. This action cannot be undone. Verify all investments in the close are fully funded before proceeding.

Prerequisites for Settlement

Before a funding close can be settled, the system verifies:

1. All investments must be funded -- every investment assigned to the close must have a status of "funded." If any investment is still pending or committed, settlement is blocked.
2. The close must be active -- you can't settle an already-settled or cancelled close.

What Happens During Settlement

When an admin settles a funding close:

1. Status updates to "settled" -- the close moves from "active" to "settled."
2. Settled amount recorded -- the total dollar amount of all investments in the close is calculated and stored.
3. Settled by recorded -- the admin who performed the settlement is recorded.
4. Settlement timestamp -- the exact date and time of settlement is captured.
5. Domain event fires -- a funding_close.settled event is published, which triggers:
   • Investor emails -- each investor in the close receives a settlement confirmation email
   • Ops notification -- the operations team receives a summary of the settled close
6. Investments are locked -- investments in a settled close cannot be modified, removed, or reassigned.

After Settlement

Once a close is settled:

• Investments are permanently assigned -- they stay in this close forever.
• The close can't be reopened -- settlement is final. There is no "un-settle" action.
• Subscription agreements become available -- investors whose investments are in a settled close can immediately access their subscription agreement. They do not need to wait for the entire SPV to close.
• New funded investments can go in the next close -- creating a new funding close will pick up any funded, unassigned investments.
• SPV can be closed -- if all funding closes for the SPV are settled (or cancelled), the SPV is eligible for closure. See Closing an SPV.

What Admins Should Know

• Double-check before settling -- review the investment list, total amount, and individual investment details. Settlement is irreversible.
• All investments must be funded -- this is the most common blocker. If an investment is still pending (waiting for payment), you either need to wait for it to complete or remove it from the close.
• Wire shortfalls should be resolved first -- if any wire investments came in short due to bank fees, adjust the amounts before settling. See Short Payment playbook.
• Investors get notified -- settlement triggers investor emails, so be prepared for investor inquiries after settling.
• Track the settled amount -- the total settled amount is recorded and visible in the admin panel. This is the official capital committed figure for this close.
• Multiple closes are normal -- an SPV with ongoing fundraising will have multiple closes over time. This is the "rolling close" model in action.