What is the aftermath of having a startup’s valuation cut?

E.g. https://startupstorymedia.com/insights-swiggy-valuation-cut-by-25-to-8-billion-by-invesco/

20mo ago

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GoofyDonut

Stealth20mo

25%! These are rookie numbers. They gotta pump those numbers up!

SquishyQuokka

Gojek20mo

Nothing much bro. You’ll have to liquidate more equity to raise the same amount. Apart from that? Your existing investors are unlikely to reinvest because the valuation they entered at vs current valuation is a net loss.

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