structured round

Advanced 🚀 Startup / VC

Definition

A funding round with complex terms beyond simple equity purchase—such as multiple share classes, ratchets, or unusual liquidation preferences. It's what happens when lawyers earn their retainers.

Example Usage

The structured round included participating preferred stock with a 2x cap, weighted-average anti-dilution, and pay-to-play provisions.

Origin

Emerged as venture deals became more sophisticated in the 2000s

Fun Fact

Structured rounds often signal either a challenging fundraising environment or investors who don't trust the company's prospects.

Source: Venture capital deal structure terminology

Related Terms

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