The Information’s 411 — Shrinking Pies

Whether you think it’s an industry-wide correction or isolated examples, the specter of down rounds have been circling Silicon Valley’s unicorns. Both Foursquare and Jawbone had their valuations cut down in recent fundings, yet investors and executives have argued that these down rounds are employee friendly. Jessica looked at the topic in her column this week and determined that while things could definitely be worse for common shareholders, we shouldn’t forget we’re still looking at stocks with lowered values.

Then she and Tom talked about his story on Snapchat’s latest ad product: app install ads. It’s another way the company is trying to entice advertisers to ramp their spending on Snapchat in  hopes of hitting some ambitious revenue targets.

Finally, Reed came on to discuss his article about how 409A stock option valuations could prove a stumbling block in private tech acquisitions. As a valuation expert said, it’s a ticking time bomb.

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