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.
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%+