January 25, 2023
Bloomberg quoted Advisory Principal Taylor Rosanova in an article about how cash-needy private companies avoid “down rounds.”
Bloomberg
By Hema Parmar
Excerpt:
“Internal rounds have always been an issue on the audit side, because the new cash might imply a value that’s not reflective of the company’s true value,” says Taylor Rosanova, a principal at accounting company Marcum LLP. “Investors may be very willing to throw an additional $5 million into a company that they’ve already invested $100 million in, without caring about the valuation, in order to help the company turn a corner and save their initial investment.”
