PitchBook: 86.8% of startups that closed down-rounds raised again or exited
MartinGTobias · x · 2026-11-07
MartinGTobias amplifies an analysis arguing down-rounds aren't the problem — the previous round's valuation is. Stripe, Meta, DoorDash, Ramp, and Klarna all went through down-rounds, and closing one signals investors still believe in the long term. Citing a 2022 PitchBook analysis, he notes 86.8% of companies that closed down-rounds went on to raise again or exit — a surprisingly high survival rate, since only strong companies can get a down-round done.
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