Understanding Down Rounds and Their Impact on Your Startup’s Growth
What if the next round of funding values the company lower than the previous round? This is known as a “Down Round,” and it can be tricky for the founder to command the company’s goal. As a founder, it is important to bring in new money to keep the existing investors happy. A down round for the company means the growth hasn’t met expectations and this hits hard on employee morale and makes recruiting and retaining people more difficult.