Down Round
Definition
A down round is a financing at a lower valuation than the previous round, diluting existing holders more heavily and often triggering anti-dilution adjustments.
Wie es im Fundraising vorkommt
Down rounds happen when growth misses the prior valuation’s implied expectations or market multiples compress; they are painful but frequently better than running out of cash.
Häufig gestellte Fragen
What are the alternatives to a down round?
Bridge financing, cutting burn to reach milestones, structured flat rounds, or in hard cases a recapitalization.
Does a down round end a startup’s prospects?
No; plenty of strong companies took down rounds in tough markets and recovered. The stigma faded as markets normalized post-2022.
Verwandte Begriffe
Setzen Sie diesen Begriff ein
Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.
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