Glossary · Fundraising
Down round
A fundraise where the company’s valuation is **lower** than the last round. It can happen when markets cool or the company misses targets. It is stressful but sometimes necessary to survive.
Related: Anti-dilution protection · Bridge round · Runway
A bit more nuance▾
- Anti-dilution terms can hammer common and founders harder in down rounds.
- Psychology matters — employees and customers read signals from headlines.
Go deeper▾
Discussion questions▾
- What would you cut before taking a punitive down round?
- How do you talk honestly with the team without panicking them?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.