Going public is the new so-called "down round" for private technology companies, the chair of a top Silicon Valley venture capital (VC) firm, told CNBC on Monday.
A "down round" is an industry terms for financing a company where shares are purchased at a lower valuation than in the previous round. When it comes to initial public offerings (IPO), this means that the public valuation of the company's stock is below its private valuation.
When asked if IPOs were a down round for tech firms, Michael Moritz, the chair of Sequoia Capital, agreed.
"That's a nice way of putting it," Moritz told CNBC in a TV interview at the TechCrunch Disrupt conference in London.