Rajah & Tann Singapore contributes an article titled “Deep Dive into Down-Round Mechanics” in the Singapore Venture Capital & Private Equity Guide 2021. The Guide is published by the Singapore Venture Capital & Private Equity Association.
Authored by Private Equity and Venture Capital Partners Brian Ng, Tracy-Anne Ang and Terence Quek, the article discusses headline issues often encountered in a down-round scenario. A down-round is a fundraising round of a company in which the pre-money valuation is lower than its post-money valuation in the preceding fundraising round. Terms that are relevant in a down-round, including anti-dilution rights, liquidation events and liquidation preferences, and redemption rights, are examined in the article.
For more information, click here to read the full Authored Publication.
