Prices are fixed. This year is a big consideration for the entire venture industry as more VCs try to navigate their overvalued portfolios and founders try to save money and grow to their higher valuations.
So one can predict that prices will fall off the cliff this year. But that didn’t happen because venture investing is not that easy.
First, let’s look at the numbers: According to Pitchbook data, the average pre-money deal value of a seed deal in the United States was $10.5 million, up from $9 million last year. The average pre-stage valuation through the third quarter of this year was $55 million, up from $44 million last year. The median price in 2021 was $91 million, up from $100 million.
It may seem silly that valuations are rising for some levels — especially after investors thought the price entry last year was crazy, and indeed, in some ways, it was — but it also does a lot. Feeling.
Kyle Stanford, senior venture capital analyst at PitchBook, told TechCrunch that we can’t forget about those record levels of dry powder.
“There’s been such a boom in multilevel investors, or Andreessen, over the last few years. [Horowitz] And Sequoia, who have a billion-dollar fund to invest in early stage,” Stanford said. “The amount of capital required for early stages is still very high and many investors are still willing to put high dollars into deals.”