Extension Round
Additional capital raised at the same terms as the most recent round.
Definition
An extension round adds more capital to a recently completed round, using the same price per share and terms. Companies do extensions when they receive strong inbound investor interest after closing, or when they want more cash without renegotiating terms. Extensions are generally positive signals since they occur at a validated price.
Why it matters
Extensions are usually good news. The company gets more capital without a new, potentially lower valuation, and existing shareholders face less dilution than they would in a bridge or down round.
Example
A company closes a $15M Series A at a $60M valuation. Three months later, a new fund wants in. The company raises an additional $5M at the same $60M valuation as an extension.