Series B valuations ticked up 10% in Q1, the largest leap since 2021

For the first time in a year, Series B valuations are again trending up.

The median valuation for a Series B round was nearly 10% bigger in Q1 2023 than it was in Q4 2022, jumping from $82 million to $90 million, according to the first cut of Carta’s Q1 valuations and fundraising data. This is the first quarterly increase since Q1 2022, and the largest quarterly leap since Q4 2021. 

It’s part of a broader positive trend in valuations across the middle and early stages that occurred in Q1. The median Series C valuation held steady at $173 million, ending a streak of four straight quarterly declines. And the median Series A valuation rose from $37 million to $40 million. 

The biggest quarter-over-quarter increase, though, came at Series B, offering a boost to these companies looking to make the transition from true startup into a more established business. Still, last quarter’s median Series B valuation is lower than in all eight quarters from 2021 and 2022. Q1’s median of $90 million is down 44% year over year. 

That’s closely in line with the median Series C, which is down 43% year over year. But on a longer timeline, Series C valuations have fallen off further from their lofty pandemic peak. Last quarter’s median Series C was down 58% from its recent high of $416 million in Q2 2021. 

Learn more

• First cut—State of Private Markets: Q1 2023

• How VCs are navigating the SaaS slump

• Healthtech shows signs of resilience amid venture downturn

Get weekly insights in your inbox

The Data Minute is Carta’s weekly newsletter for data insights into trends in venture capital. Sign up here:

DISCLOSURE: This communication is on behalf of eShares Inc., d/b/a Carta Inc. (“Carta”).  This communication is for informational purposes only, and contains general information only.  Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services.  This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. 

This post contains links to articles or other information that may be contained on third-party websites.  The inclusion of any hyperlink is not and does not imply any endorsement, approval, investigation, or verification by Carta, and Carta does not endorse or accept responsibility for the content, or the use, of such third-party websites. Carta assumes no liability for any inaccuracies, errors or omissions in or from any data or other information provided on such third-party websites.©2023 eShares Inc., d/b/a Carta Inc. (“Carta”). All rights reserved. Reproduction prohibited.