Investments glossary

Down Round

A down round refers to a private company offering additional shares for sale at a lower price than had been sold for in the previous financing round. Simply put, more capital is needed and the company discovers that their valuation is lower than it was prior to the previous round of financing. This ‘discovery’ forces them to sell their capital stock at a lower price per share.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *