When enterprise markets flip from greed to concern, there’s a meme that goes round in startup circles that flat is the brand new up. It’s shorthand for the concept in harder market situations, a startup defending its prior valuation in a proximate enterprise spherical is pretty much as good as elevating new capital at the next valuation in higher investing situations.
The brutal repricing of tech firms within the final 12 months has led to some notes — including from this publication — that we had as soon as once more discovered ourselves in flat = up territory. In the present day, nevertheless, the sport seems a bit bit completely different.
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Information that Stripe is reportedly trying to execute a soft layoff by culling lower-performing workers landed at present, together with information that Databricks, one of many different most dear startups of all time, trimmed its internal (409A) valuation by a modest amount, around 7%.
Naturally, you would possibly have a look at the information and suppose, dang, a few of these unicorns did get out of pocket final 12 months! In any case, fintech giant Stripe took a 28% haircut to its personal inside valuation earlier this 12 months, so certainly we’re seeing indicators of extra being drained out of the market?
Truly no, not likely.
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