Down Round

A Down Round is an equity financing where the company raises money at a lower valuation than the prior round, often triggering anti-dilution adjustments for preferred investors. Down Round dynamics can reshape ownership and morale, and a Down Round can also change exit incentives and negotiating leverage.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.