It is foie gras season in unicorn land • TechCrunch


elcome to the TechCrunch Change, a weekly startups-and-markets publication. It’s impressed by the daily TechCrunch+ column the place it will get its title. Need it in your inbox each Saturday? Enroll here.

With most startups getting repriced behind closed doorways, we love getting knowledge that provides us a glimpse of what’s occurring. This week, our new info comes from EquityZen, which shared insights on secondary inventory gross sales. EquityZen additionally put up just a few IPO predictions that gave us meals for thought. Let’s discover. — Anna

A glimpse of repricing

How have you learnt when a unicorn has misplaced its billion-dollar valuation? Normally you solely discover out lengthy after the very fact, when — and if — the corporate raises a down spherical that makes it clear that its fairness valuation is not within the unicorn realm.

The factor is, not many founders wish to promote that they’ve raised capital at a decrease valuation than their earlier spherical; most often, they only gained’t disclose their new valuation.

As market observers, this leaves us with little knowledge on a subject that our readers do care about: What sort of repricing they may count on. This is the reason we have been grateful for Instacart, which made it public that it reduced its valuation by way of a 409A price change. This wasn’t excellent news, nevertheless it was a useful knowledge level for everybody concerned. Nonetheless, that was again in March.

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