The rule, announced Thursday, comes on the heels of a string of lackluster IPOs.
"WeWork might have benefited [from the new SEC rule], but it's hard to know," David Golden, managing partner of Revolution Ventures, said in an email. "I am confident that no firm would have been selected to lead the deal if they were advocating for a 'down round' to Softbank."
It's important to note, though, that much of WeWork's corporate governance issues would not have been highlighted in SEC registration statements nor WeWork's prospectus to begin with, Golden added.nixed its IPOSome of the public-private valuation disparity comes down to structural issues in the underwriting process that could contribute to disappointing results the day of a company's public debut.
Beyond the balancing act of winning the deal and managing expectations, underwriters must deal with the added hurdle that previous private market investment tends to overestimate a company's valuation, Ritter added.
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