It’s foie gras season in the land of the unicorns • TechCrunch



Welcome to TechCrunch Exchange, a weekly newsletter about startups and markets. It is inspired by the TechCrunch+ daily column from which it takes its name. Want it in your inbox every Saturday? Register here.

With most startups being priced behind closed doors, we like to get data that gives us insight into what’s going on. This week, our new information comes from EquityZen, which shared information on secondary stock sales. EquityZen also put together a few IPO predictions that gave us food for thought. Let’s explore. — Anna

An overview of repricing

How do you know a unicorn has lost its billion dollar value? Usually, you won’t know until long after the fact, when — and if — the company pulls a downturn that makes it clear that its stock valuation is no longer in unicorn territory.

The thing is, few founders want to announce that they raised capital at a lower valuation than their previous cycle; in most cases, they simply do not disclose their new assessment.

As market observers, that leaves us with little data on a subject that interests our readers: what kind of price revision they can expect. That’s why we’re grateful to Instacart, which went public that it reduced its valuation through a 409A price change. It wasn’t good news, but it was a useful data point for everyone involved. However, that was in March.



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