zombie round

Definition

A funding event that technically keeps a struggling startup alive but doesn't provide enough capital or momentum to actually succeed. Life support masquerading as investment.

Example Usage

That $500K zombie round will cover payroll for six months but won't give us enough runway to achieve the metrics needed for Series B.

Origin

Venture capital slang from the 2010s, related to 'zombie startup'

Fun Fact

Zombie rounds often come from desperate existing investors trying to avoid writing off their investment entirely.

Source: Venture capital financing terminology

Related Terms

Beginner

proposition

The fancy business term for a proposal or offer, usually dressed up with adjectives like 'value' or 'unique' to make it sound more impressive than 'hey, wanna buy our stuff?' In startup pitch decks, the 'value proposition' is that one slide where founders explain why anyone should care about their idea, typically using a Venn diagram that doesn't quite make sense. A good proposition answers 'what's in it for me?' before the listener falls asleep.

🚀 Startup / VC

Intermediate

follow-on funding

Additional investment in portfolio companies by existing investors in subsequent rounds. Doubling down on your bets or, less charitably, throwing good money after bad while hoping the first investment wasn't a complete disaster.

🚀 Startup / VC

Advanced

carve-out

Reserved portion of an acquisition's proceeds specifically allocated to employees or specific shareholders, ensuring they benefit even if the waterfall would otherwise drown them. Exit sharing mandated by negotiation or generosity.

🚀 Startup / VC

Intermediate

Go-to-Market

The strategy for launching a product to customers, which in startup land typically involves a 90-slide deck, a Slack channel called launch-war-room, and a blog post nobody reads. It's called go-to-market because go-to-three-customers-who-are-your-friends doesn't sound as impressive.

🚀 Startup / VC

Beginner

Ramen Profitable

The stage at which a startup makes just enough revenue to cover the founders' basic living expenses, assuming those expenses are limited to instant noodles and shared housing. It's the lowest bar of financial success that still technically counts as success.

🚀 Startup / VC

Beginner

Angel Investor

A wealthy individual who gives money to startups in exchange for equity and the warm feeling of watching their investment evaporate. They're called angels because they appear from heaven with cash and then watch helplessly as you fly straight into the ground.

🚀 Startup / VC

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Intermediate

down-round

A funding round at a lower valuation than the previous round, signaling either terrible execution or terrible timing. Tr...