Founders - use this Q3 data to guide your negotiations with investors.
Quick spin through valuations and cash raised and then we'll tackle the top 5 things to know from US startups in Q3.
𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻𝘀
All numbers in the chart below are pre-money valuations for primary rounds only. Cleanest round information you can find.
Seed and Series A basically held flat from Q2, slight bumps upward in B-D
𝗖𝗮𝘀𝗵 𝗥𝗮𝗶𝘀𝗲𝗱
All numbers reflect the total amount raised in a given round.
Gentle climb upwards for most stages from Q2 but nothing major shifted.
𝗧𝗼𝗽 𝟱 𝘁𝗵𝗶𝗻𝗴𝘀 𝘁𝗼 𝗸𝗻𝗼𝘄 𝗮𝗯𝗼𝘂𝘁 𝗤𝟯
1. Won't lie, Q3 low-key sucked. Yes, valuations and cash raised gently rose from prior quarters but overall funding volume dropped back to Q1 levels. We are basically muddling along the bottom of the river bed in US venture right now.
2. Down rounds remained prominent at nearly 20% of all rounds in the quarter. That's 9 months straight of high down round frequency.
3. Worst quarter on record for Carta companies shutting down. As discussed in the most recent All In podcast episode (check out the Carta data graphic in the middle of their discussion), this increase in shutdowns is a lagged result of many companies having difficult conversation earlier in the year. Expect the closures to continue into 2024.
4. Median time between Series B and Series C rounds is at an all-time high (or at least since 2015). Raising in the growth stages right now is easy for the top 5%, climbing-Everest-hard for the rest.
5. As expected, the dry powder remains dry. Or perhaps slightly damp. Or just going into current companies and not helpful for new rounds. Founders should not rely on VCs needing to deploy as a backup plan.
Full data in our live Q3 report, head over to Carta dot com / blog for the details.
Take care of each other out there!
#cartadata #startups #valuations #founders #venturecapital #downround
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