A cram-down round is an investment round where follow-on investors are compelled by favorable conditions to accept a higher valuation than they would prefer.

Question

Quizplus · Accepted Answer

A cram-down round is an investment round where new investors receive favorable terms at the expense of existing investors, often resulting in the dilution of the existing investors' shareholdings, typically occurring when a company is in a weaker negotiating position.

A Cram-Down Round Is an Investment Round Where Follow-On Investors