Rather than risk selling shares at lower prices in new fundraising rounds, a growing number of venture capital-backed startups are extending previous rounds—in some cases, extending ones that appeared closed over a year ago.
Extended rounds can help safeguard a startup’s private-market valuation, as shares are typically priced at the same level as the initial round, and terms also tend to be the same, speeding the administrative process for funding, according to analysts.
Rounds…
This post first appeared on wsj.com
