Foley & Lardner LLP partner Louis Lehot is quoted in the Law360 article, “Venture-Backed Startups Cinch Belts To Survive Lean Times,” offering his perspective on the difficult environment for venture-backed startups so far in 2023.
With companies facing reduced valuations and a harder time fundraising, later-stage companies are trying to avoid down rounds.
“The whole name of the game is do not do a down round,” Lehot explained. “The first thing you do is cut costs, so that you can get to breakeven. And you’re not burning capital as fast, or you’re stretching your dollars.”
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