The key insight this week
We are now squarely in the mad dash section of the year, as investors and eager founders meet to (hopefully) close some venture deals.
One topic that's sure to come up - how much should a startup's valuation increase from one primary round to the next?
Let's take 2021 as a baseline. In that year, the jump between the median post-money valuation at Seed and Series A was 2.74x for US companies on Carta. Between Series A and B, the jump was 2.08x and from B to C it was 1.54x.
Altogether, this meant that the median Series C company was about 29 times more valuable than the median Seed company that year.
We now re-run the same numbers for 2023 (through August). Today, the median Series C company is only about 15 times as valuable as the median Seed company. That's a pretty stunning compression of valuation multiple over a 2 year span.
It would be even more striking were we to add in the Series D and beyond, but even restricted to this early-to-mid venture analysis the change has been quite rapid.
This compression has major downstream implications on fund economics, which in turn impacts those very same deal conversations we spoke about at the top.
At least we live in interesting times!
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Peter Walker
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.
