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Munchery, an\u00a0on-demand food delivery startup that has already\u00a0raised more than\u00a0$120 million, is reportedly looking to raise an additional\u00a0$15 million in funding that would force a recapitalization of the company, Bloomberg reports<\/a>. Munchery reportedly has raised more than $5 million in this new financing.<\/p>\n As part of the recapitalization, Munchery issued shares to new investors in the form of a convertible note, which can later be exchanged for equity in the result of another equity raise or liquidity event. One person told Bloomberg that the valuation on the note is\u00a0capped at $80 million.<\/p>\n Munchery\u2019s last round of funding was an $85 million Series C, which valued the company at around $300 million<\/a>. So Munchery wouldn\u2019t be\u00a0valued at more than about\u00a0a quarter\u00a0of what it once was.<\/p>\n This new deal essentially wipes out the stakes of pre-existing investors and early Munchery employees. Recapitalizations generally happen when the company can\u2019t find outside investors to drive the valuation further up, so it resets the cap table and\u00a0starts from scratch.<\/p>\n Munchery has had a rough last 12 months, between scathing reports of the company wasting an average of 16% of the food it makes, laying off 30 employees<\/a>, and burning through most of the money it\u2019s raised.<\/p>\n In November, Munchery hired James Beriker, the former CEO of Simply Hired, to take over Munchery co-founder Tri Tran\u2019s role as CEO<\/a>. As of January, both Tran and Munchery co-founder Conrad Chu no longer worked at the company.<\/p>\n I\u2019ve reached out to Munchery and will update this story if I hear back.<\/p>\n Featured Image: Sharon Hahn Darlin<\/a>\/Flickr<\/a> UNDER A CC BY 2.0<\/a> LICENSE<\/small><\/p>\n","protected":false},"excerpt":{"rendered":" Munchery, an\u00a0on-demand food delivery startup that has already\u00a0raised more than\u00a0$120 million, is reportedly looking to raise an additional\u00a0$15 million in funding that would force a recapitalization of the company, Bloomberg reports. Munchery reportedly has raised more than $5 million in this new financing. As part of the recapitalization, Munchery issued shares to new investors in the form of… Read More<\/a><\/p>\n\n<\/img><\/a>
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