Startup & VC Jargon · Managing Director level

"Down round"

"Down round" means a funding round where a company raises money at a lower valuation than its previous round, signaling the company is worth less than before.

Say this instead: lower-valuation raise

How "Down round" shows up at work

The phrase carries a quiet stigma in startup circles, since it means investors who came in earlier are now sitting on a paper loss. Press releases that announce down rounds tend to be heavy on strategic framing and light on numbers.

Buzzword

The company closed a down round at a valuation well below its 2022 peak.

Plain English

The company raised new funding at a valuation well below its 2022 peak.

Corporate Rank: Managing Director · Category: Startup & VC Jargon

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