Definition
A down round combined with the departure of key executives or massive losses—essentially the startup equivalent of hitting rock bottom while the bank forecloses.
Example Usage
When we had to do a down round AND our CTO quit, we were completely down and out, which is exactly when our board finally got realistic about selling.
Origin
Boxing terminology adapted for startup failure scenarios
Fun Fact
Founders rarely use the term 'down and out' in public, preferring euphemisms like 'strategic pivot'
Source: Venture capital slang
Related Terms
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See “Down and Out” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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