Three quarters in the rearview and all I got from 2023 was…a bridge round?
It was a bit tricky to pick out the most illuminating stat from our Q3 analysis, but I think the sustained focus on bridge/extension deals explains this year as well as anything can.
Founders need to fundraise in order to keep the lights on. They are unable, given the changing thresholds, to hit the metrics necessary for the next primary round as soon as they had expected.
So they turn to current investors and ask for extensions - in this case, priced rounds at flat or marginally higher valuations.
Investors, in turn, spend a lot of time and effort with current companies. The data above doesn't even account for the sizable rise in SAFE / Convertible Note financing in between primary rounds as well.
Of course, maybe I'm wrong and there's a better summary stat for this year.
You can choose for yourself by reading our full State of Private Markets, Q3 report now.
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Peter Walker
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