Definition
A financing round where new investors impose harsh terms on existing shareholders who lack the votes to block it. It's democracy in action, if democracy meant 'whoever has the most money wins.'
Example Usage
The company was so desperate for cash that the new investors executed a cram down round, wiping out most of the founders' equity.
Origin
Bankruptcy law terminology adopted by venture capital practitioners
Fun Fact
Cram down rounds often happen when a company is circling the drain but one investor sees hidden value others missed—or wants to own the corpse cheaply.
Source: Corporate restructuring and venture capital legal practice
Related Terms
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See “cram down round” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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