The US legal firm Wilson Sonsini has provided the following guide to navigating down-round financing which can be expected in the current Covid-19 environment. The legal specifics refer to the US market but this can be a useful guide to the issues to be addressed.
Down Rounds
About the Author: Colin Watts
20 years in venture capital, high tech M&A and strategic business development. Directly involved in the delivery of over 12 acquisitions, four IPO's and thirty venture investments with a total transaction value of more than $3bn. Served on more than 25 Company Boards and experienced many technology and economic cycles.
In 2014 he founded The Hub Exchange a Fintech software and services company providing exchange services to private companies and their investors. Current customers include the London Stock Exchange for their Elite service and the Founders Factory.
In 2017 he created Foundry Exchange to provide early stage founders with a high quality source of information and connections in the high tech ecosystem.
