So who exactly loses in downround IPO?
How much lower?
Square IPO was a lot lower than last funding round valuation. Look where it's now ;)
When I got an offer there IIRC it was on the basis of a 6B valuation. The real question is, what will happen to the shares in the months until the employee IPO lockup ends. They are selling a commodity.
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They were already valuing themselves internally below $10 billion, so it's really the VCs that are getting stiffed
Not so sure about that. VCs have all sorts of protections that employees don't.
I guess more specifically, if someone joined the company after they lowered their internal valuation they're not getting stiffed