Definition
Additional capital raised on the same terms as the previous round (like a Series A-1) rather than progressing to the next stage, buying time without the stigma of a flat or down round. The startup equivalent of taking an incomplete rather than failing the course.
Example Usage
We raised a $5M Series A extension to extend runway while we work toward the metrics needed for a proper Series B.
Origin
Venture capital financing terminology emerging in the 2010s as a face-saving alternative
Fun Fact
Extension rounds proliferated in 2022-2023 as startups tried to avoid down rounds while waiting for market conditions to improve.
Source: Venture capital financing structures and terminology
Related Terms
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See “extension round” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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