We can’t get around it hear about the economic downturn. With SaaS multiples dropping from record highs, unicorn status — and funding in general — will be harder to come by for the next two years.
We operate in a bear market which means that downgraded valuations are the reality of fundraising – the private market follows the public market and with technology stocks falling, downside rounds are inevitable.
But raising money at a lower valuation, often referred to as a “down round,” doesn’t mean you shouldn’t collect and organize communications. Down round news may not be a slam dunk generating a top-notch feature like a funding round that boosted your valuation, but it’s still funding.
Taking the thought leadership approach will help you master the message.
Our advice? To own.
Here are some tips on the best way to announce a down round and why it’s still important information to make public.
You have nothing to hide
While operating in a bear market is more difficult, especially when trying to raise money, the reality is that all tech companies are in the same boat. There will be lower valuations and in economically uncertain times you have no influence on them.
Instead of pretending a lower valuation didn’t happen, change your mindset. You have nothing to hide, and in terms of PR there is no news not good news. So focus on adjusting your expectations.
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.