Down and Out

Definition

A down round combined with the departure of key executives or massive losses—essentially the startup equivalent of hitting rock bottom while the bank forecloses.

Example Usage

When we had to do a down round AND our CTO quit, we were completely down and out, which is exactly when our board finally got realistic about selling.

Origin

Boxing terminology adapted for startup failure scenarios

Fun Fact

Founders rarely use the term 'down and out' in public, preferring euphemisms like 'strategic pivot'

Source: Venture capital slang

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