Down rounds often make up a natural part of a company's lifecycle and are not as detrimental as some assume. Max Cantor and Samir Bakhru explain the mechanics of down rounds, their impact on capitalization tables and the need for proper legal counsel and communication. They discuss:
What is a down round and how should it be perceived (0:27)
What occurs in an average down round (2:12)
Why investors and companies typically engage in a recap (5:03)
