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August 17, 2022 | Tom Ballard

PitchBook News reports VC valuations have begun to mirror broader market but there are exceptions

PitchBook News reports the U.S. venture capital (VC) valuations have begun, in some ways, to mirror the broader market uncertainty, but certain stages and sectors have proved remarkably resilient, as some start-ups remain able to demonstrate their potential for value creation.

The group’s “Q2 2022 US VC Valuations Report,” sponsored by Silicon Valley Bank, shows how investor sentiment has – and hasn’t – changed over the past quarter, and what that may mean for deal sizes, liquidity and more as the year goes on. Key takeaways from the report include:

  • Early stage median pre-money valuations showed signs of contractions, recording their first quarter-over-quarter decline in more than two years, falling 16 percent in Q2 to $52 million;
  • Seed stage investment has held up better than any other stage, with deal counts and sizes remaining elevated and median pre-money valuations up 33 percent this year over 2021; and
  • Nontraditional investors have concentrated their more cautious behavior at the top end of the market – the top quartiles of deal size participation and valuation both fell by more than 13 percent in the first half of 2022.

The full report can be download here.

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