Every VC-Backed IPO in the Past 12 Months Has Been a Down Round
VCs are accepting smaller paydays in exchange for much-needed cash, while IPO investors have enjoyed big rallies.
When banking app Chime goes public next month, it will mark the eighth straight venture capital–backed initial public offering in the past 12 months to be valued less than it was in private fundraising rounds.
Chime, for instance, was valued at $25 billion in 2021, but its bankers have been discussing pricing its shares at roughly an $11 billion valuation, a person familiar with the matter said. It expects to set an initial price range for its shares Monday.