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Glossary Venture Capital / Term

Reorganization or Corporate Reorganization

Reorganizations are significant changes in the equity base of a company such as converting all outstanding shares to Common Stock, or combining outstanding shares into a smaller number of shares (a reverse split). A Reorganization is frequently done when a company has already had a few rounds of venture financing but has not been able to successfully increase the value of the company and therefore is doing a Down Round that is essentially a restart of the company.

Permanent link Reorganization or Corporate Reorganization - Creation date 2020-02-03


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