As more startups struggle to raise money from venture capitalists and approach bankruptcy, they are going to extreme lengths to stay afloat. The latest example is Good Eggs, which delivers fresh produce and other groceries.

The company this month raised around $7 million from Greenwich, Conn., investment firm Glade Brook Capital Partners at a pre-investment valuation of $15 million, said two people with knowledge of the deal. That represents a 94% valuation drop from late 2020, when the pandemic boosted food-delivery services and the startup raised $60 million at a pre-investment valuation of $270 million, one of these people said. The new deal also effectively wiped out the value of stakes held by earlier investors such as Benchmark that chose not to contribute more money.