Sign up to receive 5 free days of our daily summary for tech news.

Venture Capital

How Foursquare’s Investors Fared in Down Round

Foursquare announced new financing last week that reportedly cut the valuation of the company by roughly half. But a close reading of the company’s charter shows investors in certain rounds, such as series C, come out of the down round much worse off than those in series D.

If Foursquare ends up getting sold at the latest valuation, Series C investors would lose up to 79% of their investment while Series D would get their money back, according to back-of-the-envelope math. The people who put money in at the latest round, Series E, would come away with gains of as much as 50%. Series A would get at least 10 times their money, thanks to how cheaply they bought in, while Series B would lose up to 17%.

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

What else is included in my subscription?

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Annual Subscriber only benefits:

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Venture Capital Startups

Robinhood Nears Funding at Valuation Over $7 Billion

By Zoë Bernard

Uber/Lyft Markets Policy

Uber CEO Shielded From Stock Drop by Options Repricing

By Alfred Lee and Amir Efrati

Venture Capital Enterprise Markets

Question for Slack: When Will Investors Cash In on Gains?

By Alfred Lee

The varying outcomes are a reminder of how financing terms attached to different rounds and classes of shareholders determine how investors in private tech firms do in a sale or initial public offering.