The key insight this week
2022 was the least fun year in venture in the last decade or so - that's obvious. We've been digging through our data to find distinctions between company cohorts within the broader decline. The graphic above explores Series A in more depth across the 6 top industries by volume.
One unexpected ray of sunshine: hardware startups. Median pre-money valuations in hardware actually rose from H1 to H2 of 2022 (though fewer rounds were completed in the latter period).
Beyond this single industry, adding 25th and 75th percentile valuations to the standard median visualization gives us two new pieces of information. First, the 75th percentile declines in nearly every industry are severe. Investors were more wary as the year progressed of assigning outsize valuations to any startup.
Secondly, 25th percentile drops, while present, were more shallow. There seems to be a valuation "floor" in Series A of around $20 million (by and large).
Congrats to the hardware founders still signing term sheets!
New reports
As a subscriber to the Data Minute, you got a real sneak peek at Q4 2022 valuations and round sizes. That same data is now public in our First Cut blog post.
Asking for a friend
Rumor has it that we may launch a newsletter dedicated solely to startup compensation in the near future. We'd touch on comp data, policy changes like pay transparency, and gather perspectives from across startup People teams.
Please respond with any questions you'd like that compensation newsletter to cover!
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Peter Walker
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DISCLOSURE: This communication is on behalf of eShares, Inc. dba 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. © 2026 Carta. All rights reserved. Reproduction prohibited.
