Down Round

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Definition: Down Round

Down Round
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Full Definition of Down Round

A downward adjustment of a company’s valuation by private equity investors that has the effect of protecting their stake in the company while diluting the equity of the shareholders. This may occur after a company suffers a decline in valuation after it has received initial rounds of capital investment.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/down-round/
Modern Language Association (MLA):
Down Round. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/down-round/.
Chicago Manual of Style (CMS):
Down Round. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/down-round/ (accessed: April 19, 2024).
American Psychological Association (APA):
Down Round. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/down-round/

Definition Sources

Definitions for Down Round are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.