Why VCs Are Pushing Down Rounds Faster Than Ever

Episode notes

Down rounds used to be a dirty secret in venture capital — a signal that a startup was failing. But in today's market, with public tech stocks like NVIDIA down 6% in a week and ARKK down 4.7%, VCs are getting more aggressive about repricing portfolio companies. Lucas and Luna break down why the stigma is fading, how term sheets now include 'cram-down' provisions that protect investors at the expense of founders, and what the shift means for the thousands of companies that raised at peak valuations in 2021. They look at the specific case of Palantir spinout companies and what the 10.3% drop in Palantir's stock signals for private AI valuations. Plus: why the 'pay-to-play' clause is making a comeback and what founders can do to negotiate better terms. #DownRounds #VentureCapital #TermSheets #StartupValuations #CramDown #PayToPlay #FounderEquity #LiquidationPreference #AntiDilution #NVIDIA #ARKK #PLTR #Palantir #PrivateMarkets #Business #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo