Venture Deals · glossary
A round priced below the last one. Solaris’s Series B priced shares at €500, half the Series A price, and clauses from earlier rounds then acted by themselves. Chapter 13
Explained in Chapter 13, The Down Round: Anti-Dilution and Pay-to-Play, of Venture Deals.
A down round is a round priced below the last one. What makes it hard is the paper signed at earlier rounds. Some of its clauses act by themselves when the price falls, whether anyone wants them to or not. They can change what a preference share converts into, take an investor's preference away and move control of the company.Read Chapter 13, The Down Round: Anti-Dilution and Pay-to-Play →
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