Business Model Down Round Finance Pay to Play 
Steve Blank
APRIL 26, 2022
For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A cram down is different than a down round. A down round is when a company raises money at valuation that is lower than the company’s valuation in its prior financing round.
Both Sides of the Table
FEBRUARY 14, 2016
But if you’re a seed investor and you’re worried that the A-round won’t get done if your post-money is too high you suddenly start paying less. Why Financing in Falling Markets is So Damn Difficult. Why Down Rounds are Harder Than You May Think. Down rounds are hard. And so it goes.
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