PrivateTechSharesDown round
Also called: down-round
In one line
A fundraising round priced below the company's previous round, cutting the per-share value.
In plain English
When a company raises money at a lower valuation than last time, each share is worth less than before. It often triggers extra dilution through anti-dilution protection for earlier investors.
If you were explaining it to a 5-year-old
Last year your toy was 'worth' 10 coins. This year the shop says it's only worth 6. Everyone's toys just got cheaper.
Why it matters when you sell
A down round can sharply reduce what your stake is worth and worsen your position behind investors — important context when deciding whether to sell.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.