...The tech downturn has also led to greater uncertainty over what startups are really worth. “People are still not exactly sure where to price things,” said Jenny Fielding, managing partner at The Fund. Founders are reluctant to agree to lower valuations in funding rounds — deals known as down rounds, which are dreaded by startups. “I’ve talked to a few founders who said, ‘Yeah, the round is stalled.’ I’m like, ‘Great, lower the price,’ ” Fielding said. “It is about supply and demand.”
Founders are loath to lower prices, and VCs are reluctant to invest if they don’t. “There’s a little bit of a disconnect. A lot of founders haven’t gotten the message that valuations are coming down,” Fielding said. For investors, she said, the stakes are higher than they were before. “No one wants to look like an idiot.” —Priya Anand
No comments:
Post a Comment