Writing about down rounds in a bull market feels like shopping for an umbrella in this historic California drought. You are bound to get some strange looks if you walk into a department store and ask for an umbrella. I also bet that once we hit our El Nino winter we will suddenly have a shortage of umbrellas. In other words, it pays to be prepared. When the current market climate does change, capital will become more scarce and will put downward pressure on valuations. Historically, the frequency of down rounds has always spiked during bear markets.