Definition up round financing

Up Round Financing refers to a round of financing in which a company's worth increased since its prior valuation.

Basically at the first round of financing the company sells shares to the VC firm(s) at an agreed price per share. If a follow-on (subsequent) round of financing involves selling shares below the first-round price, then it is a down round. Selling at the same price gives us a flat-round, and a higher price (best of all) is an up-round.

 
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