Startup fundraising is risky, but there’s a key way to control that risk

WeWork has had a tough time as of late. Since it shared its IPO prospectus on August 14th, the company has:

  • Pushed out its founder and CEO Adam Neumann
  • Reduced Neumann’s voting powers and sold Neumann’s private jet
  • Had its publicly traded debt fall to an all time low price of 84.5 cents on the dollar
  • Discussed layoffs affecting 5,000 employees
  • Postponed a $6 billion dollar loan deal