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Down Rounds

A down round is a funding round in which a company raises capital at a lower valuation than in its previous round of financing. This can happen if the company has not performed as well as expected or if market conditions have changed. Continue Reading Below

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Discover the definition of financial terms related to down rounds.

Down Rounds: Causes, Implications, and Real-Life Examples Thumbnail

Down Rounds: Causes, Implications, and Real-Life Examples

Silas Bamigbola

About Down Rounds

A down round is a funding round in which a company raises capital at a lower valuation than in its previous round of financing. This can happen if the company has not performed as well as expected or if market conditions have changed. Down rounds can be detrimental to the company and its existing investors, as they dilute the ownership stakes of the current shareholders.