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Instacart cuts valuation by 40%; squeezed by tech selloff, heated delivery wars
- next_xibalba 5y agoThe unit economics of these companies DON’T work (at these high valuations). Yes, heavy competition makes this vase fact worse, but reduced competition won’t fix it. edit: grammar and clarity
- Akarnani 5y agoI have no knowledge of the deal and am not involved in anyway; this sounds like the 409A for the common stock came down not the preferred valuation. Valuations can't be moved without someone buying stock at a lower price to make the lower price "real". If there was no investment, they didn't Lower the valuation. 409As are different, happen every year to enable common equity grants to the team. What is probably happening is the team's option grants are at a lower price because the inputs to the 409A formulae (including how the stock market is doing) have come down.