A second close is an additional closing of the same financing round at the same terms, after the initial close. It allows additional investors to participate at the same valuation, same preferred class, and same rights, typically within 30-90 days of the initial close. It is structured to bring in investors who couldn't complete in time for the initial close and is common at large rounds where multiple investors complete diligence at different paces. Distinct from extension rounds (later, separate round) and bridge rounds (interim financing).
The mechanics:
Initial close: round closes with primary investors having completed diligence.
Second close window (typically 30-90 days): additional investors can join at same terms.
Same ...