Down Round

0.01 sec.

Down round

Refers to a round of venture capital financing that is raised at a lower firm valuation than the previous round.

Down Round

In venture capital, a round of financing in which a company issues more stock with less valuation than previous financing rounds. This devalues all other stock in the company and results in less equity per share. A down round is usually a response to a major or minor cash flow problem, and ideally result in immediate cash on hand to cover operating costs. When the dotcom bubble burst, many tech companies held down rounds as an emergency measure to stay in business. See also: Antidilution provision.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
Financing Round Impaired Capital			Double-Tax Agreement Doubling Option Douglas T. Breeden Dovish Dovuta Dow Dow dividend theory Dow Divisor Dow Jones & Company, Inc. Dow Jones 65 Composite Average Dow Jones AIG Commodity Index Dow Jones Averages Dow Jones Averagesr Dow Jones CDX Indexes Dow Jones Industrial Average Dow Jones Industrial Averager Dow Jones Transportation Average Dow Jones Transportation Averager Dow Jones Utility Average Dow Jones Utility Averager Dow Jones Wilshire 5000 Index Dow Theory dower Down market down payment Down Round Down Volume down-and-in option down-and-out option Downgrade Downgrading Downside Downside Protection Downside Risk Downsize Downsizing Downstream Downstream Merger Downswing Downtick Downtick Volume Downtrend Downturn downzoning Draft Drag-Along Rights dragnet clause Dragon Bond drainage rights Draining Reserves Drama Price			down on luck down on luck down on luck down on luck Down on the Corner Down on the Farm Down on the Upside down one for the road down pat down payment down payment down payment down payment Down Payment and Closing Cost Down Payment and Closing Cost Assistance Down Payment Assistance Down Payment Assistance Program Down Payment Assitance Loan down payments down payments down payments down payments Down Pipe down quark down quark Down Range Support Ship Down Region Aspartic Protease Down Regulated in Metastasis down regulation Down Right No Good Down Round Down Rounds Down Shop Lead Down Since Day One Down South Down South Florida Boy Down South Georgia Boys Down South Georgia Girl Down Stage Down Stage Center Down Stage Left Down Stage Right down staging Down Stream Down Stroke Per Minute Down syndrome Down syndrome Down syndrome Down Syndrome Association Down Syndrome Association for Families Down Syndrome Association of Central Florida Down Syndrome Association of Central Kentucky Down Syndrome Association of Central Texas Down Syndrome Association of Charlotte Down Syndrome Association of Delaware Down Syndrome Association of Greater Cincinnati Down Syndrome Association of Greater New Orleans

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.