January 28, 2023

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It’s foie gras season in unicorn land • TechCrunch

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elcome to the TechCrunch Exchange, a weekly startups-and-marketplaces newsletter. It is impressed by the each day TechCrunch+ column in which it gets its identify. Want it in your inbox every single Saturday? Indicator up right here.

With most startups having repriced driving shut doors, we like acquiring details that provides us a glimpse of what is likely on. This week, our new info will come from EquityZen, which shared insights on secondary inventory profits. EquityZen also place up a couple of IPO predictions that gave us foodstuff for assumed. Let us check out. — Anna

A glimpse of repricing

How do you know when a unicorn has lost its billion-greenback valuation? Typically you only uncover out long right after the reality, when — and if — the business raises a down spherical that can make it apparent that its equity valuation is no for a longer time in the unicorn realm.

The point is, not many founders want to publicize that they have raised money at a reduced valuation than their prior round in most instances, they just will not disclose their new valuation.

As market observers, this leaves us with little info on a subject that our viewers do care about: What kind of repricing they could count on. This is why we ended up grateful for Instacart, which produced it general public that it reduced its valuation by a 409A price improve. This was not great news, but it was a beneficial details stage for anyone associated. Even so, that was back in March.