Fundraising & Equity
Down Rounds — Frequency and Impact
Collated by Harry Prabandham
Curated by Rubric Financial
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How Common Down Rounds Are
- [Source: Carta State of Private Markets, PitchBook-NVCA Venture Monitor]
- In favorable markets (2020-2021), down rounds represented less than 5% of all funding rounds — nearly everything was flat or up
- In tighter markets (2023-2026), down rounds have increased to 15-25% of all rounds — reflecting the correction from inflated 2021 valuations
- Down rounds are most common at Series B+ where prior-round valuations were inflated and the company hasn't grown into them
- Seed-stage down rounds are less common because SAFEs and notes don't establish a formal valuation to decline from
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