4 ms·
Per crunchbase they raised their last funding round on a pre-money valuation of $1.6 billion. Since the market cap now is less than that valuation, why is the
by jartelt 9y ago
Per crunchbase they raised their last funding round on a pre-money valuation of $1.6 billion. Since the market cap now is less than that valuation, why is the coverage saying this is a big success? It seems to me like this is a down round of some sort. Does anyone know if I am missing something here? Or does this type of down round not really affect the employees common stock?
- tschellenbach 9y agoThat really depends on the terms of their last investment round. As far as I know those haven't been disclosed. I would suspect that the investor in the last round is compensated with more shares, probably something similar to if he had invested at a 1.1 billion instead of 1.6 billion valuation. Maybe not though. Depends on the terms.