In his article, Davidoff Solomon predicted, "The unicorn wars are coming, as the downturn in the market will force these onetime highfliers to seek money at valuations below their earlier billion-dollar-plus levels, known as 'down rounds.'”
He also goes into more detail about the kinds of wars that will occur, including those
- Who own common stock vs. those who own preferred -- those with preferred make out better.
- Employees vs new money -- in other words between stock options that may now be worthless as new investors push the value down significantly.
- New money vs. old money -- in this case the valuation given the shares that new investors get vs. those earlier investors got.
- Founders vs. everyone else.
If you're interested in unicorns because they set a tone for the market, Davidoff Solomon's article is worth checking out.