PitchBook reports that the venture market is compressing.
After wide expansion through the first two years of the COVID-19 era, late stage valuations are now falling rapidly with Q3’s median for U.S. venture capital more than 35 percent lower than Q4 of 2021. At the same time, seed and early stage continue to surge, as Q3 recorded the highest median seed valuation in our dataset.
The organization notes that the convergent zone being created is adding further complications to the market’s future. Q3 early stage deal sizes and valuations remain at or near where the comparable late stage figure was prior to the pandemic’s onset.
So where do companies go from here? PitchBook’s data and analysis can be found in its Q3 US VC Valuations Report.