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  • Term

    Main definition

  • Cram-Down

    A funding round in which new investors (usually bringing substantial capital into the company and/or as part of a down round) demand and receive new preferred securities and contractual provisions that significantly reduce (or dilute) the ownership percentage (and rights and protections) of previous investors.

    Usually, as a result of a cram-down round, the new investors gain majority and controlling ownership of the company. See also Wash-Out Round.

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