• As unicorn valuations become the norm, more venture capitalists are relying on this legal tactic used by Square's investors to protect from down-round IPOs

    6 monthes ago - By Business Insider

    IPO downside protections are growing in popularity as more startups raise venture capital at unicorn valuations.
    A new report, published by the tech law firm Fenwick & West, found that 48% of unicorn fundraising rounds in the first half of 2018 included these legal protections for investors.
    As $1 billion-plus valuations become more common in Silicon Valley, so do some key legal protections that keep venture capitalists from utter destruction should one of their investments turn sour.
    The percentage of unicorn financing deals that use safeguards, known as IPO downside protections, rose...
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