Up Round
A funding round where the company's valuation is higher than the previous round.
Definition
An up round occurs when a company raises capital at a higher valuation than its last fundraise. This is the normal, healthy trajectory: the company has grown, so it is worth more. Up rounds increase the paper value of existing shares and are a strong positive signal for employees holding equity.
Why it matters
Every up round increases the value of your existing options or shares on paper. If you hold 10,000 shares and the price per share goes from $1 to $5 in an up round, your paper gain is $40,000.
Example
A company raised its Series A at $40M post-money valuation and now raises a Series B at $150M. The price per share goes from $2 to $7.50. All existing shareholders see a 3.75x increase in paper value.