A downward adjustment of a company's valuation by private equity investors that has the effect of protecting their stake in the company while diluting the equity of the shareholders. This may occur after a company suffers a decline in valuation after it has received initial rounds of capital investment.
Related information about down round:
- Down Round Definition | Investopedia
A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the company by earlier investors.
- The Perils of a 'Down Round' Financing - Businessweek
Jan 23, 2009 ... (Such a round is known as a "down round.") Unfortunately, because of the recession and plunging markets, management at many companies ...
- The Down-Round Dilemma, Venture Capital Article | Inc.com
Apr 1, 2003 ... The Down-Round Dilemma, Venture Capital Article - Once a rarity, down rounds are becoming the norm among firms lucky enough to get ...
- Down-round Protection
Down-round protection is a term that is frequently seen in equity financing term sheets. The good news is that if everything goes as planned for your startup, this ...
- Down Round Financing - Venture Capital Financing in Down Economy
Down Round Financing: Down Round Financing's Practical Realities and Legal Considerations and Protections by VC Attorney Shannon Zollo - discusses the ...
- Down round financings - American Bar Association
Volume 11, Number 3 - January/February 2002. Down round financings. How to cope with lower valuations for your client company. By Dan M. Mahoney ...
- Down Round | Glossary | VC Experts
Learn More About Down Round. A star ( Iconstar ) denotes premium ... Common Down-Round Characteristics Iconstar; Venture Capital Survey Silicon Valley ...
- Down Rounds - Financial Dictionary - The Free Dictionary
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 ...