noun
General Slang
Down round
· noun · finance
A funding round priced below the last one.
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Definitions
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A startup raises new equity at a valuation lower than the previous round. Brutal optics, dilutes existing shareholders extra hard, and usually triggers anti-dilution ratchets that punish founders. The signal everyone was hiding from in 2021 became unavoidable in 2023-24.
“Klarna's down round wiped 85% off the valuation overnight.”
by community
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Down round In A Sentence
Klarna's down round wiped 85% off the valuation overnight.
Origin & Usage
Variants
down-round
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