Predictive Analytics How exactly is the business going to move forward? Having to raise money at a lower valuation couldn't be more taboo in startup circles. "We are possibly going to see some more down rounds coming down the pipe for the next 12 months," says Justin Byers, chief data officer for the Prime Unicorn Index, which tracks the share price performance of privately funded U.S. companies. This ‘down-round’ typically calls for raising money at a lower valuation than the previous round. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more. "That's not the right way to do it," says the New York City-based founder. Fields marked with an asterisk (*) are required. Rewards Optimization If you dig into the data, it's clear that while there is more money available, it is flowing through fewer deals. When does the company plan to go public? Far East closes oversubscribed pre-IPO funding round. Sales Compensation Global Benefits When valuations fall, pre-IPO companies need to explore new ways to motivate and retain employees concerned about the liquidity of their underwater stock options. Still, founders who refuse to let go of their valuations have found the alternatives can be much more damaging in the long term. "Future investors need reassurance that your momentum won't fade," adds the California-based founder, whose company was acquired a year after its down round. General Insurance Corporation offered its shares at Rs 912, but prices have come down to Rs 170. If an IPO is relatively near (i.e., within the next 12 to 18 months), there is a chance public investors will flag the repricing or exchange as a governance concern and question whether management might do it again in the future. Govt has announced that up to 10% of the IPO issue size would be reserved for policyholders. Want to see the real deal? Having to raise money at a lower valuation couldn't be more taboo in startup circles. But taking some of the hype out of the IPO process can leave Silbermann room to argue that his more conservative approach puts the long-term interests of both the company and its investors first. A more complicated story about what's happening inside a startup's business isn't very marketable. If you don't think your company's value has hit bottom, or if you think your future financing rounds will be at a higher value, then canceling or repricing underwater stock options might be premature and send the wrong message to employees. The Starlink IPO will arrive sooner than you think -- and cost more than you can imagine. 3 Min Read (Adds deal details, Ping An, OneConnect comment, changes … More inside scoop? argue over the very definition of a down round. What's more, down rounds, or funding rounds where companies raise money at a lower valuation than in a previous round, are at their lowest point in more than a decade, according to data from research firm PitchBook. The performance of unicorn darlings like Lyft and Uber, which are both trading below their IPO valuation, could also bring about a trickle-down effect to the private market. Down Rounds are on the Rise, Forcing Pre-IPO Firms to Explore New Retention Strategies. One last option is to maintain the status quo. Workforce Planning The latest investment pushes Zomato’s valuation to $5.4 billion from its previous $3.6 billion. And don't forget to keep your employees in the loop on all necessary information. Zomato has been raising funds the last year, too, in what is thought to be a pre-IPO round. From a human resources perspective, this environment creates new challenges in motivating employees who have a large portion of their pay tied to illiquid company stock. QUEENSLAND-based start-up Far East Gold has charmed a significant amount of coin from investors in its pre-IPO funding round. How will the down round affect the company? En 2015, 41 sociétés ont été introduites sur les marchés parisiens Euronext et Alternext et 4,6 milliards d’euros de fonds levés contre 4,4 milliards en 2014. Should the repricing include executives and directors? Dropbox has amended its S-1 filings as of March 12 to indicate an offering of 36 million shares at $16-18. Square, Inc., a mobile payment company founded in the heart of Silicon Valley, had planned to sell 27 million shares in an IPO offering ranging from $11 to $13 per share, a significant discount from the company’s October 2014 funding round that valued shares at $15.46. Pinterest wouldn't be the first company to make its public market debut at a valuation lower than its last round of private equity funding. What Should You Do When Your Founder Asks For More Equity?