Flat Round
A financing round where a company raises capital at the same valuation as its previous funding round.
Definition
A flat round occurs when a startup raises money at the same valuation as its previous financing round. This typically indicates that while the company hasn't declined in value (avoiding a down round), it also hasn't grown enough to justify a higher valuation.
Common Scenarios
- • Company maintained operations but showed limited growth
- • Market conditions remained challenging
- • Modest progress toward milestones
- • Need for bridge financing at existing terms
- • Strategic decision to maintain current valuation
- • Existing investors providing additional support
Real-World Example
Steady State: Company raises Series B at same $50M valuation as Series A
The company maintained revenue and market position but didn't achieve the growth metrics needed for an up round.