Investors have described the current vibe around early-stage startups as "frothy".
At least in valuation terms, they're not wrong. Our data for Q1 2025 (provisional, but I think pretty accurate) shows both priced seed and Series A valuations have hit new peaks.
And those peaks aren't just for the past 5 quarters. The earliest stages are now above the valuation medians for the boom times of 2021 as well (not adjusting for inflation - but who adjusts for inflation in their heads anyway…)
Now there are a couple complicating factors. First, AI valuations are way higher than non-AI (I'll do more splitting these out in the future). And second, round volume is not rising dramatically alongside valuations — so this paper wealth is concentrated rather than dispersed.
Too much capital chasing too few great deals? Check.
Transformational technology ushering in a new era of startups? Check.
High quality businesses achieving revenue goals ever earlier? Check.
It's a Rorschach test for how you feel about startups these days.
More data on how Q1 ended coming soon once our data set fills out! In the meantime, be sure to sign up for our virtual event (details below) covering fund performance and the future of the emerging manager.
Onwards!
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Peter Walker
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