Down rounds has hovered around 2% of all rounds over the past few months, according to Silicon Valley Bank’s State of the Markets report, but could leap rapidly for portfolio companies if they are able to get any funding away at all.
For top companies flat or higher rounds are possible but the middle tranche remain vulnerable to down rounds and more onerous terms in preference and conditions if their 18 month funding cycle has coincided with the coronavirus-led economic shock.
For the bottom third, it’s a hope and a prayer time.
I’ll be moderating a webinar hosted by Fenwick and West partners Ian Goldstein and Evan Bienstock designed to help CVCs better understand these deal structures so keen to hear before that your thoughts and insights on the topic to make sure I draw out their leadership.
