Recruiter's Glossary

Examples: Information Rights • General Partner • Cap Table

Up Round

Term from Venture Capital industry explained for recruiters

An Up Round refers to when a company raises new investment money at a higher value than its previous funding round. It's like getting a higher price tag on your company each time you seek new investors. This is generally seen as positive news because it means the company is growing and becoming more valuable. For example, if a company was worth $10 million in their first funding round, and then raises money at a $20 million value in their next round, that's an Up Round. The opposite would be a "Down Round," where a company has to raise money at a lower value than before.

Examples in Resumes

Led Series B Up Round fundraising, securing $30M in new investment

Advised 12 portfolio companies through successful Up Round financings

Participated in due diligence for 5 Up Round investments as Associate

Typical job title: "Venture Capital Associates"

Also try searching for:

Investment Associate VC Analyst Investment Professional Venture Capital Principal Investment Manager Deal Professional Private Equity Associate

Where to Find Venture Capital Associates

Professional Networks

Industry Resources

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Example Interview Questions

Senior Level Questions

Q: How do you evaluate whether a company's Up Round valuation is justified?

Expected Answer: Should discuss various factors like revenue growth, market conditions, competitive landscape, and key performance metrics that justify a higher valuation. Should also mention red flags like artificial growth or market hype.

Q: What strategies would you recommend to a portfolio company trying to achieve an Up Round in a down market?

Expected Answer: Should explain practical approaches like focusing on profitability, strategic partnerships, maintaining growth metrics, and timing the fundraise appropriately.

Mid Level Questions

Q: What are the key terms that typically change between a company's initial round and an Up Round?

Expected Answer: Should be able to explain changes in basic terms like equity percentages, board seats, voting rights, and protective provisions that often come with higher valuations.

Q: How do you prepare a company for an Up Round fundraise?

Expected Answer: Should discuss gathering key metrics, preparing pitch materials, identifying potential investors, and timing considerations for the fundraise.

Junior Level Questions

Q: What's the difference between an Up Round and a Down Round?

Expected Answer: Should explain that an Up Round is when a company raises money at a higher valuation than its previous round, while a Down Round is at a lower valuation, and what each typically indicates about company performance.

Q: What basic metrics would you look at to determine if a company is ready for an Up Round?

Expected Answer: Should mention fundamental metrics like revenue growth, customer acquisition, market size, and basic financial health indicators.