Down Round

定义

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.

它在融资中如何出现

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.

常见问题

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.

运用此术语

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