Why Q3’s median valuations actually make perfect sense • TechCrunch


Reviews were It is high on the mind of the entire adventure industry this year as many enterprising investors try to navigate their over-valued portfolios and founders rush to conserve cash and grow in their high valuations.

So one might have expected valuations to go down the slope this year. But this did not happen because investing in risk is not so simple.

First, let’s look at the numbers: According to PitchBook data, the average upfront valuation for an initial deal in the US was $10.5 million, up from $9 million last year. The average early-stage valuation during the third quarter of this year was $55 million, up from $44 million last year. The average late-stage valuation was $91 million, down from $100 million in 2021.

It may seem silly for valuations to keep rising for some phases — especially after investors made it sound like they were crazy to come up with last year’s prices, and of course, in some ways, it is — but it also makes a lot of sense.

For example, we can’t forget about those record levels of dry powder, Kyle Stanford, senior venture capital analyst at PitchBook, told TechCrunch.

“There has been such growth over the past few years for multi-stage investors or Andreessen [Horowitz] And Sequoia that has billions of dollars of funds investing in the early stage,” Stanford said. “The amount of capital that is still available for the early stage is still really high and a lot of investors are still willing to put the top dollar into deals.”

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