Down rounds are down in early stage
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The prevalence of down rounds in Series A equity financings fell in Q2, after trending upwards since 2022. April saw a recent peak of 22.5%, but by the end of June, the frequency of down rounds in Series A decreased to 19%.
Overall, from a multi-year perspective, down rounds remain elevated across stages, though we note a recent bifurcation between early- and late-stages. In June, about two in five late stage transactions were down rounds, similar to levels seen over the prior few months. Early-stage transactions, while still elevated compared to the last few years, started trending downwards at the end of Q1. Aumni will continue to monitor these developments.
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