‘Tidal Wave’ of Down Rounds Hits Startups

Turntide Technologies, a unicorn company backed by Breakthrough Energy Ventures, is nearing a deal for new capital that would significantly reduce its valuation by over 80%.
The startup world has seen a surge in down rounds, with some companies planning "cram-down" rounds of financing that heavily dilute existing investors' stakes.
Other companies, such as Nuro and Quora, have also discussed similar moves that could lead to cram-downs.
This trend indicates a significant shift in the investment landscape, with investors and lawyers noting the increasing prevalence of down rounds and potential dilution of ownership rights.