Fresh product and grocery delivery startup Good Eggs raised $7M down round at a pre-money valuation of $15M, a 94% drop over its peak pre-money valuation of $270M from late 2020 when it raised $60M funding.
Existing backers that did not participate in the current round, such as Benchmark, effectively saw their stakes wiped off.
- The current round was a "cram-down" or pay-to-play deal led by Glade Brook Capital Partners.
- Glade Brooks is set to receive preferred shares equivalent to four times the capital.
- Investors in the current round received a 2x liquidation preference.
- This is the second time that Good Eggs is raising emergency financing to keep it afloat. Benchmark had led the firm's $50M round in 2018 that saved it from bankruptcy.
- The San Francisco-based startup has raised $200M in equity financing to date.
- "Cram-down" rounds are increasing with startups running short on cash runway.
- Earlier this week, fitness startup Tonal was looking to raise funding at a 90% valuation drop.
