Did Uber just have a down round?
From the Mercury News (June 2, 2016):
SAN FRANCISCO — Uber said Wednesday it has raked in $3.5 billion from Saudi Arabia’s national investment arm, a deal that sets a record as the largest U.S. funding round for a private, venture-backed company.
The massive investment is remarkable even for Uber, which consistently has raised staggering amounts of cash at sky-high valuations while undergoing explosive global growth. Under terms of the deal, Uber will maintain its valuation of $62.5 billion and its position as the most valuable private company in the world.
“Maintain it’s valuation”? Really?
It looks like Uber just sold another FIVE and ONE-HALF PERCENT of the company and took in another $3.5 BILLION in cash and had no increase in valuation. That sounds like a dilutive down-round to me.
Isn’t Uber the “healthiest” unicorn?
Is this the beginning of a private market downdraft?
I sure hope not.