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What is a Down Round

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May 03, 2023
What is a Down Round
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Accepted Answer
May 03, 2023
A down round refers to a funding round in which a startup company raises capital at a lower valuation compared to its previous funding round. Down rounds can occur for various reasons: performance concerns, market fluctuations, financial pressures, etc. It's important to note that while down rounds can be challenging, they are not necessarily indicative of a startup's long-term potential. Some successful companies have faced down rounds at various points in their history but managed to recover and achieve significant growth.

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