Down Round
定義
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.
資金調達における位置づけ
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.
よくある質問
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.