Corey Mueller

Sep 11, 2024 | jdsupra.com | Jeffrey Bodle |John L. Filippone |Corey Mueller

A “down round” is when a company raises capital based on a valuation that is lower (often materially so) than the company’s valuation in one or more prior financing rounds. Depending on the severity of the situation, a “down round” also may be referred to as a “cram down” or “washout” financing when the financing would dilute or subordinate the payment priority of existing investors who do not participate.

Sep 10, 2024 | lexology.com | Andrew M. Ray |Jeffrey Bodle |John L. Filippone |Brian P. Slough |Corey Mueller

A “down round” is when a company raises capital based on a valuation that is lower (often materially so) than the company’s valuation in one or more prior financing rounds. Depending on the severity of the situation, a “down round” also may be referred to as a “cram down” or “washout” financing when the financing would dilute or subordinate the payment priority of existing investors who do not participate.

Sep 10, 2024 | morganlewis.com | Andrew M. Ray |Jeffrey Bodle |John L. Filippone |Brian P. Slough |Corey Mueller

A “down round” is when a company raises capital based on a valuation that is lower (often materially so) than the company’s valuation in one or more prior financing rounds. Depending on the severity of the situation, a “down round” also may be referred to as a “cram down” or “washout” financing when the financing would dilute or subordinate the payment priority of existing investors who do not participate.