Milestone funding is an approach where the project is funded for enough capital to reach the next

milestone, which is a predefined point in the project where some deliverables are completed or

some criteria are met. Milestone funding helps to reduce the risk of investing too much money in a

project that may not deliver the expected value or benefits. It also helps to monitor the progress and

performance of the project and ensure that the project is aligned with the business objectives and

stakeholder expectations. Milestone funding is a common practice in agile projects, where the

project is divided into short iterations that deliver incremental value and feedback. Reference: CBAP

/ CCBA Certified Business Analysis Study Guide, chapter 5, page 229; CBAP (Certified Business

Analysis Professional): 230+ Exam Practice Questions with Detail Explanations and Case Study Based

Questions,