With the exception of seed rounds, VC valuations in Q3 continued to descend from peaks registered in 2021 and early 2022. Fewer companies met investors’ higher bar for funding, which forced many to resort to bridge financings or stave off raising new capital by cutting costs, according to a new PitchBook report.
Key takeaways include:
- Seed deal sizes experienced a modest ascent.
- The valuation gap between seed and early-stage startups continued to shrink.
- The estimated percentage of down rounds climbed to a 10-year high at 17.1%, up from 13.5% in Q2. Read more.
