Series A Valuations Stopped Falling and Started Rising in Q2 2023

Fresh data: Series A valuation trends for US startups in Q2 - let's dig in!

Lots of detail, but here's the key: Series A valuations have stopped falling in the US and are starting to move back upwards.

𝗦𝗼𝗺𝗲 𝗰𝗵𝗮𝗿𝘁-𝗿𝗲𝗮𝗱𝗶𝗻𝗴 𝗵𝗲𝗹𝗽

• Primary rounds = the first priced round in a given alphabet series (eg. Series A)

• Bridge rounds = any round raised in the same series following a primary round (eg. Series A-preferred-2)

Both round types saw valuations increase from Q1, which is great to see.

𝗢𝘁𝗵𝗲𝗿 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴 𝗳𝗶𝗻𝗱𝗶𝗻𝗴𝘀

• The percentage split between bridge rounds and primary rounds continued to favor primaries, but only by a little. Lots and lots of bridge rounds happening these days in Series A

• Volume is not charted BUT looks like more Series A rounds completed in Q2 than Q1 of this year - was Q1 the bottom?

• Volume is still low compared to boom times (~50% lower than Q4 2021)

As a reminder, bridge rounds here are also called extensions. They are typically raised from investors that are already on the cap table and bring in less money than a primary round, as they are geared towards helping the startup get to the next primary with a bit more cash.

But Peter, what about seed rounds? or Series B? Or C?

We cover all alphabet stages in our First Cut State of Private Markets, out tomorrow - subscribe to the link in comments if you're interested!

#cartadata #SeriesA #valuations #startups