Louis Lehot Discusses Startups Accepting Investor Friendly Terms to Preserve Valuations

Foley & Lardner LLP Partner Louis Lehot is quoted in The Information article, “Startups Avoid Valuation Cuts With ‘Up Rounds in Name Only,’” discussing the growing trend of startups securing funding at higher valuations through giving investors friendlier deal terms.

Lehot commented that investors are getting better terms than in 2021, telling the publication that two-thirds of middle- and late-stage startup deals he’s worked on this year have had a 2 to 3 times liquidation preference, meaning those investors would be paid back double or triple their money before other stakeholders.