down round

American  

[doun round] / ˈdaʊn ˈraʊnd /

noun

Business, Finance.

1. a phase in the funding of a relatively new business during which it is assigned a lower value by investors, resulting in a reduced price for its shares and, often, an effort to raise funds by increasing the number of shares, thus diluting the equity held by existing investors.

---

Etymology

Origin of down round

First recorded in 1995–2000

Example Sentences

The Masters champion, who won this tournament in 2013, had an up and down round which included five birdies and six bogeys in tricky conditions with strong winds.

From BBC • Dec. 4, 2025

"There is still a stigma attached to a down round and founders and investors are ... looking at alternative financing options," said Parthiv Rishi, a partner at law firm Sidley Austin.

From Reuters • Jun. 29, 2023

Top-ranked Lydia Ko was tied for 23rd at 71 in her quest to win a major for the first time since 2016 after an up and down round with three birdies and three bogeys.

From Seattle Times • Apr. 20, 2023

In July, Klarna raised capital in a down round that cut its valuation by over 80% to $6.7 billion, a far cry from the $46 billion price tag the fintech attracted last year.

From Reuters • Aug. 9, 2022

Soon the three companions found themselves in a ring of horsemen moving in a running circle, up the hill-slope behind them and down, round and round them, and drawing ever inwards.

From "The Two Towers" by J. R. R. Tolkien