Valuations for a crop of high-profile startups have been falling fast, even according to their own internal assessments. But one company has been notably restrained in revising its valuation: cloud-based database software startup Databricks.
Databricks trimmed its internal share price this month, which lowered its implied valuation to $31 billion, about 7% lower than at the same time last year, a person familiar with the matter told The Information.
That’s far less dramatic than recent cuts by other startups, such as grocery-delivery service Instacart and payments giant Stripe. Even some of Databricks’ investors are more downbeat about the valuation: Fidelity slashed its calculation of what Databricks is worth 33% earlier this year. The situation puts the spotlight on how private tech company internal valuations are calculated, which is an issue for startup employees as internal assessments are used in calculation of employee stock compensation.