Washout Round
Definition
A washout round is a financing at a valuation so low it massively dilutes existing shareholders, often part of a recapitalization where new investors take control.
Wie es im Fundraising vorkommt
Washouts rescue companies out of options: prior preferences get crushed or converted, and active founders are typically re-equitized to stay motivated.
Häufig gestellte Fragen
How is a washout different from a down round?
Degree: a down round lowers the price; a washout resets ownership so drastically that prior stakes become nearly symbolic.
Can founders survive a washout?
Operationally yes; new money usually grants fresh equity and vesting to the team it needs, while passive early holders bear the loss.
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.
Datenbank der Investoren durchsuchen