Fidelity Investments, an investor in Hootsuite, a Canadian unicorn, has cut the value of its stake in the social media company by 18%.
According to Bloomberg, Fidelity—the lead investor when Hootsuite raised $60 million in 2014—Hootsuite was valued at $1 billion, but that may not be the case anymore.
Last year, Hootsuite Chief Executive Officer Ryan Holmes said that an initial public offering was eventually in the cards but that he was focused at the time on increasing the company’s cash flow. Hootsuite hired a chief financial officer in October. Then it cut some employees in December.
Fidelity also cut the value of stakes in US giants including Snapchat and Pinterest.
“I really feel for everyone who got caught up in the craze to land public market funds in their private rounds,” Shopify CEO Tobias Lutke wrote on Facebook. “I don’t think most CEOs were aware that this leads to periodic valuation disclosure. Your valuation fluctuates in plain sight all based on a single analysts point of view with zero liquidity for your stock to make up for it.”
Founded in 2008, Hootsuite has more than 10 million users and has raised more than $250 million in total.