The Ultimate Down-round: "Nanosolar Pre-Money Plummeted From $2.1B to $50M as Aeris Capital Swooped In"

From Dow Jones Private Equity & Venture Capital:

A recent recapitalization of solar power company Nanosolar Inc. that brought in $70 million in new funding also slashed the company's pre-money valuation to $50 million, just four years after the company was valued at more than $2 billion, VentureWire has learned.

 

The deal for Nanosolar included a major investment by Aeris Capital AG, which manages the wealth of SAP AG founder Klaus Tschira. The investor sees an opportunity to participate in a large solar market and pick up assets on the cheap, in a contrarian move amid a market where many investors have been fleeing solar manufacturing.

 

The deal also wiped out many of Nanosolar's earlier preferred-share investors, even as common shareholders such as current and former employees were able to avoid major dilution through an unusual offer....MORE