What Is a Down Round? How to Survive One — or Avoid It
A down round is a financing at a lower valuation than the previous round. Here's what triggers one, who it hurts most, and how to structure around it.
Venture Capital Explainers for Founders & Analysts
Venture capital has its own vocabulary, incentives, and mechanics. Our VC explainers break down complex topics — from liquidation preferences to fund economics — so founders and analysts can make better decisions without wading through jargon.
Popular VC Explainer Topics
- How VC funds work: LPs, GPs, carry, and fund lifecycle
- Deal structures: SAFEs, priced rounds, pro rata, and option pools
- Fundraising mechanics: Warm intros, partner meetings, and diligence
- Portfolio dynamics: Follow-on strategy, reserves, and power-law returns
Start with the explainers below to build a stronger foundation in venture capital.
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