In a bear market, what goes up usually comes down. But according to SoftBank chief Masayoshi Son, some founders are defying this principle when it comes to private startup valuations. And in the view of the billionaire tech investor, denying a downround will only prolong the economic pain facing the startup world. But is he right?
In a statement made earlier this week, Son warned that the funding “winter may be longer” because founders – particularly those at unicorns – are refusing to accept lower valuations in later funding rounds.
“Unicorn companies’ leaders still believe in their valuations, and they wouldn’t accept that they may have to see their valuations [go] lower than they think,” Son said, according to SoftBank’s translator....