4.9 C
London
Sunday, December 4, 2022

A wave of late-stage startups quietly lowered their valuation in the third quarter

Must read

NC power outage investigated as ‘criminal event’

Authorities were investigating widespread overnight power outages in south-central North Carolina as deliberate criminal acts, the Moore County sheriff said in a statement late...

Salesforce CEO Succession Drama and Other TC News • londonbusinessblog.com

This week I talk to Rita Liao about the great wall of porn obscuring information about protests in China. And Ron Miller returns...

Smoodi closes $5 million to expand reach for its robotic smart blender • londonbusinessblog.com

Smoodi wants to see its smoothies in the hands of, well, everyone, and a new infusion of capital and distribution partnership has the startup...

Oscar Ramsay – The Untold Facts About Gordon Ramsay’s Son

Oscar Ramsay is the son of the famous British chef cum TV personality, Gordon Ramsay and his lovely wife, Tana Ramsay. He is...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

Many start-ups are overvalued. But because they are also well stocked with cash, they have not yet had to raise new funding at a lower or flat valuation. Well new data van Carta discovered that cracks are beginning to appear.

Startup equity infrastructure platform Carta found that a record number of entry-level employee equity awards — which are stock option packages offered to individual employees — were repriced in the third quarter. The total of 18,629 repricings was 260% higher than the 7,165 repriced in the second quarter. The only earlier quarter that comes close is the second quarter of 2020, with 12,570, when the pandemic started to unfold.

What these revised share packages tell us is that startups are starting to lower their internal valuations, despite not raising another round. How? Because employee stock awards are tied to a company’s 409a valuation — a third-party assessment of a company’s fair market value.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

NC power outage investigated as ‘criminal event’

Authorities were investigating widespread overnight power outages in south-central North Carolina as deliberate criminal acts, the Moore County sheriff said in a statement late...

Salesforce CEO Succession Drama and Other TC News • londonbusinessblog.com

This week I talk to Rita Liao about the great wall of porn obscuring information about protests in China. And Ron Miller returns...

Smoodi closes $5 million to expand reach for its robotic smart blender • londonbusinessblog.com

Smoodi wants to see its smoothies in the hands of, well, everyone, and a new infusion of capital and distribution partnership has the startup...

Oscar Ramsay – The Untold Facts About Gordon Ramsay’s Son

Oscar Ramsay is the son of the famous British chef cum TV personality, Gordon Ramsay and his lovely wife, Tana Ramsay. He is...

Sirius XM flaw could have allowed hackers to unlock and start cars remotely

A vulnerability affecting Sirius XM's connected vehicle services allows hackers to remotely start, unlock, locate, flash and honk cars. Sam Curry, a security...