Glossary
Down round
A funding round priced below the post-money valuation of the company’s previous round.
Down rounds dilute existing shareholders more heavily and can trigger anti-dilution protections, which give earlier investors extra shares at the expense of founders and employees.
Companies sometimes avoid a headline down round with structured terms, such as larger liquidation preferences, that hold the price up while passing value to the new investor.
In Hebrides
The Valuation Suite tests a proposed price against several methods, with the confidence in the resulting range stated.
Valuation Suite