Online grocer Good Eggs' pre-money valuation dropped by 94%, down from $270M in late 2020 to $15M in its recent down round.
The troubled startup raised $7M in Glade Brook Capital.
This is the second time investors have provided distressed funding to the startup.
- Benchmark invested $50M in the firm in 2018, rescuing it from the brink of bankruptcy.
- Many previous investors, including Benchmark, that did not participate in the current round will effectively see their stakes wiped away due to the reduced valuations.
- For the current down round, otherwise called a "cram-round," Good Eggs had to offer investors a 2x liquidation preference.
- Glade Brooks will be given preferred stock worth four times the capital invested.
