Business Pitch Dictionary by pitch.dog
Valuation & conversion mechanics · Working

Step-up

Also called: valuation step-up

ELI5

The company is valued higher than in the last round.

Used in conversation

“The step-up must be supported by operating progress.”

Definition

An increase in valuation between financing rounds.

Here “Step-up” means: An increase in valuation between financing rounds.

Pitch context

You will see “Step-up” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches valuation & conversion mechanics.

Why it matters: In valuation & conversion mechanics, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.