Funding and ownership
Down round
A funding round at a lower valuation than the previous one. It can happen at any stage.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
It's a down round: we're raising at half last year's valuation.
Why it matters to you.
Existing shareholders are diluted more than usual, and investors' preference rights mean staff options can end up worth very little or nothing. If your company raises a down round, ask what it means for your options.
Related terms.
Videos.
No video mentions Down round by name yet. These are on the same topic, Business & startups.