In Q2, US VC valuations were considerably below the peaks of 2021 and early 2022. But there are signs that prices may be stabilizing. The median valuations for all stages, except for seed, registered an uptick from the previous quarter.
Although prices are no longer in a free-fall, the VC valuation glass may still be less than half full amid the near-frozen IPO market, reduced risk appetite from VCs, and a continued pullback from nontraditional investors. Other key takeaways from PitchBook’s Q2 2023 US VC Valuations Report:
- Seed-stage deal sizes have started to stagnate, indicating that the capital that VCs are willing to give to the youngest companies may have reached a ceiling.
- The median valuation step-ups for early-stage companies have hit a near-decade low, a challenge for seed-stage investors looking for markups.
- Insiders have led 9.4% of late-stage rounds year-to-date, the highest proportion in nearly a decade. Read more.
