A new round priced below the last one, which marks the company down and usually triggers anti-dilution adjustments for earlier preferred holders.
In July 2022 Klarna raised $800M at a $6.7B post-money valuation. The previous round, closed in June 2021, had valued the company at $45.6B. CEO Sebastian Siemiatkowski framed the down round publicly as 'the right move' given the macro environment, and the financing closed in days, which became a reference data point for every later-stage company recalibrating in 2022 and 2023.