Down Round

Definición

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.

Cómo aparece en el fundraising

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.

Preguntas frecuentes

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.

Pon este término en práctica

Las definiciones solo ganan negociaciones cuando estás en una. Encuentra los inversores que financian tu etapa y empieza la conversación.

Explora la base de datos de inversores