Per crunchbase they raised their last funding round on a pre-money valuation of $1.6 billion. Since the market cap now is less than that valuation, why is the coverage saying this is a big success? It seems to me like this is a down round of some sort. Does anyone know if I am missing something here? Or does this type of down round not really affect the employees common stock?
That really depends on the terms of their last investment round. As far as I know those haven't been disclosed. I would suspect that the investor in the last round is compensated with more shares, probably something similar to if he had invested at a 1.1 billion instead of 1.6 billion valuation. Maybe not though. Depends on the terms.
