Down Round
Advanced Level
Bengaluru
Entrepreneurship
2 views
Definition
A funding round where a company raises capital at a lower valuation than the previous round.
Detailed Explanation
Down rounds indicate challenges - market conditions, missed targets, or business issues. They dilute existing shareholders significantly. Anti-dilution provisions protect some investors.
Example
A startup valued at ₹500 crore in Series B raises Series C at ₹300 crore valuation.
Local Context (Bengaluru)
Several Bengaluru startups faced down rounds during the 2022-23 funding winter.
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