Instacart is not done making news.
Earlier this week, the well-known grocery delivery unicorn announced a software suite as part of a self-described third act. Today, Bloomberg reported that Instacart reduced its valuation from around $39 billion to $24 billion, representing a roughly 38.5% reduction in the company’s worth.
Commentary indicates that the company’s new “valuation” was set by a 409a price change, not a decrease in the value of preferred shares sold in its last round. The nuance at play here is that 409a valuations are set by third parties – Carta does this work for customers, as an example – and not startups or their venture investors, resulting in a more objective price by some measures. That said, what we presume to be a newly set 409a valuation for Instacart does matter.
The Exchange explores startups, markets and money.
Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.
The valuation change fits into the larger trend of the value of high-growth technology companies flagging in recent months. From late-2021 highs, the public markets have slashed the valu …
