Vendor Sponsor
PitchbookMorgan Stanley
Research Published
November 8, 2023
Description
Trends in venture backed investment, valuations, firms, dealflow, etc.
Demographic or Methodology comments
Topic Tags
DemographicsCapital markets valuations and venture investments
Sample
SaaS Platform Data
Data Source
Pitchbook VC funding data
Demographics
Created time
Dec 6, 2023 11:09 PM
Directory name
The Rightstack Research DB
VC valuations stagnate further
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.
Despite IPOs of prominent companies, their listings performed relatively poorly, indicating reduced investor enthusiasm for VC-backed companies, according to the Q3 2023 US VC Valuations Report, sponsored by Morgan Stanley at Work.
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.
Table of contents
Key takeaways | 4 |
Pre-seed and seed valuations | 5 |
Early-stage VC valuations | 7 |
Late-stage VC valuations | 9 |
Venture-growth valuations | 11 |
A word from Morgan Stanley at Work | 13 |
Enterprise SaaS | 15 |
Mobility tech | 17 |
Nontraditional investors | 19 |
Liquidity | 21 |
Deal terms | 23 |