In VC-land, down rounds are highly stigmatized. No one knows what anything is worth, but a company that remains in reasonably good esteem can ensure that the va

In VC-land, down rounds are highly stigmatized. No one knows what anything is worth, but a company that remains in reasonably good esteem can ensure that the valuation doesn't go down, even if it "should" based on fundamentals. Terms can get worse and funding may become harder to get, but down rounds can be prevented unless something really bad is happening. On the stock market, where the valuation process is nearly continuous, almost 50 percent of days are down days (the daily drift is tiny in comparison to the standard deviation). What has happened is that the Facebook stock has gone from an environment with artificial support to one without it. It has nothing to do with whether there's a bubble.