Cramdown

As in a "cramdown round."

You raised a ton of money at a suuuper high valuation for your psychic brain reader LADAR system (laser plus radar). Instead of making customers psychic, it grew them more hair. Unfortunately, the hair grew in, um, not-necessarily-desirable places.

So you're working on figuring out how to get the thing to grow hair on the head. And that $30 million you raised on a B round valuation of $70 million? Yeah. It's almost all used up, and your next round will be a desperation-money-raise. Your previous investors will be "crammed down" in their valuation, as will your percentage ownership as founder when the new valuation is $40 million with $15 million of new cash going into the company.

Take it or leave it. Hairy problem.