Down Round

A down round is an investment round in which a company raises capital at a valuation that is lower than its previous valuation

A down round is an investment round in which a company raises capital at a valuation that is lower than its previous valuation. This can happen when a company is struggling to raise money and has to accept lower valuations from investors. Down rounds can be difficult for companies, because they can signal to the market that the company is having financial difficulties. They can also make it harder for companies to raise money in the future, because investors will be less likely to invest in a company that has previously raised money at a lower valuation. However, down rounds can also provide opportunities for investors to get involved in a company at a lower price.


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