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.
Related Articles (126 articles)
-
-
Family Office: How Ultra-High-Net-Worth Capital Invests in Startups and VC Funds
Family offices manage wealth for ultra-high-net-worth families. Here's how single vs multi-family offices invest in VC — directly, through funds, and as co-investors.
-
Fund of Funds (FoF): How It Works in Venture Capital and Private Equity
A fund of funds invests in other funds rather than directly in companies. Here's the 2026 landscape, fee structure, and when a FoF is the right LP choice.
-
The VC J-Curve: Why New Funds Look Bad Before They Look Good
The J-curve describes how VC fund returns dip in early years before recovering and accelerating. Here's why it happens and how LPs plan around it.
-
Micro VC and Emerging Managers: The Fastest-Growing Segment of Venture in 2026
Micro VCs ($5M-$50M funds) and emerging managers (Funds I-III) now capture an outsize share of seed-stage deal flow. Here's why, and how to evaluate them.
-
What Is a Moat? Competitive Advantages That Matter for VC-Backed Startups
A moat is a durable competitive advantage. Here are the seven moats VCs actually underwrite — network effects, switching costs, scale, brand, IP, distribution, and data.