When a company is the size of Square and Box, why not just raise a down round—a round of financing that values the company at less than the previous round?
Valuations are lower than they were three months ago. Companies that were once worth billions of dollars now find themselves with lower valuations.
Prices will always fluctuate as a result of market forces.
Even if there are not anti dilutive preferences, both management and existing investors are likely to leave a down round as their last resort, simply because of the dilutive impact it would have.
Valuations are lower than they were three months ago. Companies that were once worth billions of dollars now find themselves with lower valuations.
Prices will always fluctuate as a result of market forces.