This sample form, a Down-Round Term Sheet document, is usable for corporate/business matters. The language is easily adaptable to fit your circumstances. You must confirm compliance with applicable law in your state. Available in Word format.
Absolutely! Surviving a down round can help companies rebuild and come back stronger, paving the way for new opportunities as they learn and grow from the experience.
Entrepreneurs ought to stay sharp and negotiate well. It's essential to strike a balance that keeps the company going while not giving too much away. It’s a delicate dance, for sure.
While it's not rare, seeing a down round is usually a sign that a company is facing challenges. It's part of the rollercoaster ride of startups, for better or worse.
Existing investors might feel the pinch since their shares could be worth less after a down round. It’s like getting a pie, but finding out it's smaller than expected!