A cram down round is a highly punitive down-round financing—usually done when a startup urgently needs capital—where the new money comes in at a much lower valuation and on coercive terms (often including pay-to-play penalties, forced conversions, or other provisions) that can severely dilute or subordinate non-participating existing shareholders.
Ryan RobertsStartup 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.
