Down rounds an acceptable option to extend cash runway, say founders, CEOs
By
Biju Kumar
At a time when venture capital funding for startups has slowed down significantly especially for richly valued companies, top founders, CEOs and investors said raising funds in a down round is a completely acceptable option for entrepreneurs if it provides them with much-needed liquidity and extends their cash runway. A down round is when a private company raises capital at a lower valuation than in its previous funding round.