The Threat of a Down Round: How Startups Can Adapt To Protect Their Value (Crunchbase)

The Threat of a Down Round: How Startups Can Adapt To Protect Their Value

The current funding environment might have a lot of founders questioning how to stay sustainable. How do you address this tough situation? Do you cut costs or do you make a risky decision to keep spending and attempt to grow into the original valuation?

Until the recent market turn, companies were raising money at all-time high valuations. Now the environment has fundamentally shifted, and everybody is thinking about the best path forward. If the public comparables have compressed 10x, the company will need to grow 10x more than it expected before the next round in order to maintain its valuation.

Miguel Fernandez, co-founder and CEO at Capchase gives his insights on how startups can better equip themselves when dealing with challenging circumstances.

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