down round

English

Noun

down round (plural down rounds)

1. (finance, business) A round of financing for a company that raises capital at a lower share price (or sometimes a lower company valuation) than the previous round.

   Coordinate terms: up round, flat round

   • 2024 March 16, Tabby Kinder, “Reddit IPO reveals reality check for Silicon Valley”, in FT Weekend, Companies & Markets, page 14:

     Despite the combined nearly $35bn write-off of supposed shareholder value, these “down round” IPOs are not being met with derision in Silicon Valley. Instead, they are a signal that rationality is slowly returning to venture capital.