Down Round
A down round occurs when a company raises capital at a valuation lower than its previous funding round, often signaling diminished investor confidence or a challenging market environment.
3 min read
Related Terms
View all termsDeal Flow
Deal flow refers to the rate at which investment opportunities are presented to investors or financial professionals.
Disruptive Technology
Disruptive technology is an innovation that significantly alters or replaces existing methods, products, or markets, often rendering them obsolete.
Distressed Investing
Distressed investing involves purchasing the securities of companies facing financial hardship or bankruptcy, aiming to profit from the eventual recovery or restructuring of the distressed company.
Drag-Along Rights
Drag-Along Rights are provisions that enable majority shareholders to compel minority shareholders to join in the sale of a company, ensuring the transaction proceeds smoothly without being blocked by minority stakeholders.
Drawdown
Drawdown is the peak-to-trough decline during a specific period of an investment, trading account, or fund, representing the loss from a high to a low point, expressed as a percentage of the peak value.
Due Diligence
Due diligence is a comprehensive appraisal of a business or individual to establish assets and liabilities and evaluate potential risks and opportunities.
Ready to find the right investors?
Access our database of 150,000+ investors and find LPs aligned with your fund strategy.