The ratio of a unicorn’s valuation to the total investment it has received (the “V/I ratio”) has been declining in recent quarters, and if that trend continues we can expect the terms of future unicorn financings to become tougher for companies. By way of explanation, venture capitalists calculate a company’s total liquidation preference (generally the aggregate amount of money previously invested in a company) before investing. This is done for two main reasons. One is to understand how much money has to be paid to prior investors on a sale of the company before the new investor would receive a...