Board Discussions In The Era Of Down-Round Financings

By Ethan Klingsberg (March 17, 2020, 5:20 PM EDT) -- For venture capital-backed startups, we are now entering a new phase of financings. Many will be down-round financings, or financings at valuations significantly below those of prior financing rounds, and will therefore cause dilution of the stakes held by preexisting investors, especially holders of common stock that typically lack any rights to protect against dilution....

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