alleryStart learning →A new round priced below the previous round's share price is a:
AFlat round
BUp round
CSeed round
DDown round
Answer & Solution
Correct answer: D. Down round
A lower price per share than before is a down round, usually adverse to founders.
Keep practising Valuation (Finance)
Browse all Valuation (Finance) questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
Startups raise money in several rounds rather than one lump sum mainly to:Down rounds were common after which events?Series A priced shares at 500 and Series B at 650. Series B is an:What happens to existing holders' ownership with each new financing round?Founders hold 100 of 125 shares after a round. Their stake is:Post-money is 90 crore with 150 shares outstanding. The value per share is:Founders own 100 shares. A new investor gets 25 new shares for 5 crore. Pre-money is:Founders hold 40 shares. An investor puts in 4 crore for 10 new shares. Post-money valuati