EquityZen in TechCrunch

Are IPOs The New Down Rounds?

It’s become a meme in tech circles, “IPOs are the new down round,” venture capitalists quip.
The dreaded “down round,” when a startup raises capital beneath its prior valuation, is getting pushed back to the public markets. While most companies grow their value in the stock market, Square, Box and Hortonworks went public at market caps that were lower than what late stage venture capitalists signed up for.
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