Office-sharing startup WeWork debacle has unicorn investors seeking cover

Office-sharing startup WeWork debacle has unicorn investors seeking cover

Photo by Eloise Ambursley on Unsplash

In the months since office-sharing startup WeWork‘s botched public debut, mid- and late-stage investors in big start-ups have been pushing for more safeguards in case their firms fail to go public or sell shares at a lower valuation than pre-IPO financing rounds.

Fundraising terms are rarely made public, but more than a dozen Silicon Valley-based lawyers, entrepreneurs and venture-capital investors told Reuters that since WeWork‘s canceled public offering and other ill-fated IPOs, investors have been securing protections of their original investments in “unicorns” – private companies valued at $1 billion or more.

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