tomtunguz.com · 2022-03-25 · 1532d

Startup Self-Repricing as a Recruiting Tool

As public market multiples compress and talent competition intensifies, startups may preemptively reprice equity grants downward to increase upside potential for current and prospective employees. Self-repricing allows companies to maintain equity motivation despite valuation pressure while potentially repositioning future fundraising rounds as "up-rounds" rather than down-rounds.

3 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Public Software Company Multiple Compression (Growth Leaders)

66percent

75th percentile

Fastest-growing public software companies in down market environment (2022)

Public Software Company Multiple Compression (Median)

53percent

25th percentile

Public software companies in down market environment (2022)

Series C Valuation Decline

30percent

Year-to-date changes in Series C valuations relative to public market decline of 50%+