Should founders announce down rounds? This PR expert says you have nothing to hide

We can’t avoid hearing about the economic downturn. With SaaS multiples dropping from record highs, unicorn status — and funding in general — will be harder to come by in the next two years.

We are operating in a bear market, which means reduced valuations are the reality of fundraising — the private market follows the public market, and with falling tech stocks, down rounds are unavoidable.

But raising money at a reduced valuation, often called a “down round,” doesn’t mean you shouldn’t rally and organize communications. Down round news may not be a slam dunk that generates a tier one feature like a funding round that drove your valuation upward, but it’s still funding.

Taking the thought leadership approach allows you to control the message.

Our advice? Own it.

Here are some tips on the best way to go about announcing a down round, and why it’s still important information to make public.

You have nothing to hide

While operating in a bear market is more difficult, especially when trying to raise funds, the reality is that all tech companies are in the same boat. Lower valuations will happen, and during economically uncertain times, they’re beyond your control.

Rather than pretending a lower valuation didn’t happen, switch your mindset. You have nothing to hide, and in terms of PR, no news is not good news. So, focus on adjusting your expectations.

This article was originally published on Read More on their website.