What’s the best way to navigate your down round?

Mark Suster (Managing Partner at Upfront Ventures)
What Most People Don’t Understand About How Startup Companies are Valued | Bothsides of the Table

Down rounds trigger anti-dilution provisions. And down rounds might favor later-stage investors over earlier-stage investors who get wiped out. Or down rounds might favor earlier-stage investors because the liquidation preferences of later stage investors get reduced. Investors will be worried that the down round will cause founders or senior management to depart and no VC wants to replace management.