As $1 billion-plus valuations become more common in Silicon Valley, so do some key legal protections intended to keep venture capitalists from utter destruction should one of their investments turn sour.
The percentage of unicorn financing deals that use safeguards, known as IPO downside protections, rose sharply in 2017 and the first half of 2018, according to a report published Thursday by the technology law firm Fenwick & West.
Image: When Jack Dorsey took Square public in 2015, it triggered a key protection for late-stage investors who bought shares at a higher valuation than the company got in its initial public offering. REUTERS/Lucas Jackson
