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

We cannot escape hearing about the economic downturn. With SaaS ratios falling from record highs, unicorn status—and funding in general—will be harder to come by in the next two years.

We’re in a bear market, which means depressed valuations are the reality of fundraising—the private market follows the public, and when tech stocks fall, falls are inevitable.

But raising money at a low valuation, often referred to as a “down round,” doesn’t mean you shouldn’t crowdsource and organize communications. The news of the round below may not be the slam dunk that creates a Tier 1 feature like the funding round that boosted your valuation, but it’s still funding.

Using an ideological leadership approach allows you to control the message.

Our advice? Own it.

Here are some tips on how to best announce a rejection round, and why it’s still important information to make public.

You have nothing to hide

Although it is more difficult to operate in a bear market, especially when trying to raise funds, the reality is this all tech companies are in the same boat. There will be lower valuations and in economically uncertain times they are out of your control.

Instead of pretending the lower rating didn’t happen, change your mindset. You have nothing to hide, and from a PR perspective, no news no good news. So, focus on adjusting your expectations.

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