Flat Round
Definition
Flat Round: A flat round is a financing round at the same valuation as the previous round. While better than a down round, it indicates the company hasn't grown as expected and still causes dilution without the validation of increased valuation.
Example Usage
“Given market conditions, we raised a flat round to extend runway while waiting for growth to accelerate.”
Common Misconceptions
Related Terms
Down Round
A down round is a financing round where the company raises capital at a lower valuation than the previous round. This results in significant dilution...
Valuation
Valuation is the estimated worth of a company at a given point in time. Pre-money valuation is the company's value before receiving new investment, wh...
Runway
Runway is the amount of time a startup can continue operating before running out of money, assuming current burn rate remains constant. It's calculate...
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