Rounds (“flat”, “up”, “down”)

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A flat round” is a round of financing (usually venture capital financing) where investors purchase stock from a private company at the same valuation as the valuation placed upon the company by earlier investors. An “up round” is a round of financing where investors purchase stock from a company at a higher valuation than the valuation placed upon the company by earlier investors. An “up round” is the opposite of a “down round”. A down round is a round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the company by earlier investors.

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