It’s foie gras season in unicorn land
elcome to the TechCrunch Exchange, a weekly startups-and-markets newsletter. It was inspired by the daily TechCrunch column , from which it takes its name. You want it delivered to your inbox every Saturday? Sign up here.
With most startups getting repriced behind closed doors, we love getting data that gives us a glimpse of what’s going on. EquityZen shared new information on secondary stock sales this week. EquityZen also provided some IPO predictions that gave us food to think about. Let’s explore. — Anna
A glimpse of repricing
How can you tell when a unicorn is losing its billion-dollar valuation. Usually, you find out about a unicorn’s loss of valuation long after the fact.
The truth is that not all founders want to announce that they have raised capital at lower valuation than their previous round. In most cases, they won’t even disclose the new valuation.
As market observers, this leaves little data on a topic our readers care about: What type of repricing they can expect. This is why we were grateful for Instacart, which made it public that it reduced its valuation through a 409A price change. Although it wasn’t great news, it was useful data for all parties. But that was March.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.