Is Discord really worth 32% less today than it was last year? – TechCrunch

Maybe most One interesting story that will emerge from the venture capital slowdown and stock market correction that began in late 2021 is the rebalancing of unicorn valuations.

Instacart and Stripe have received new, lower 409a scores. Klarna was re-evaluated via an equity round, and other well-funded startups that launched last year are eyeing the prospects for flat or negative rounds throughout 2022.

And then there’s Discord, which raised $500 million last year at a massive $14.7 billion valuation, according to PitchBook data. The chat-centric software company, which previously declined to exit Microsoft for around $10 billion, then saw its valuation drop, according to Fidelity calculations. (The US investment house, which focuses primarily on publicly traded stocks, owns a few Discord stocks in its Contrafund and regularly gives us a glimpse of how Fidelity rates them.)

As Insider first reported, Fidelity recently downgraded its Discord shares. Is this cut fair? Today we examine Discord’s price change per Fidelity numbers and what we know about its growth trajectory, then conclude by comparing the public markets to the company’s changing value.

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If Fidelity’s cut is fair, Discord will still retain Decacorn status, a membership in the somewhat rare club of $10 billion or more private companies. But we may find that Discord is cheap with Fidelity’s new brand, or that it’s still expensive, which would bode badly not only for the well-known communications service favored by gamers, but for a host of other unicorns as well. Is Discord really worth 32% less today than it was last year? – TechCrunch

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