Where valuations for tech companies stand now, in 3 charts – Fortune
For all the “end-of-the-world” talk we’ve been hearing for months, valuations really hadn’t come down that much—on paper, that is.
That is starting to change.
New data released this morning from CB Insights showcases how the caution we’ve been hearing about in the market is very real and is seeping through the cracks into actual numbers. Median tech valuations were down across nearly every stage in the third quarter—to the tune of almost 29% compared to the second quarter of this year, per CB Insights. The impact has been most pronounced on late-stage deals, where the median valuation fell by 50% (womp womp).
Venture capitalists continue to take fewer risks on the term sheet, negotiating stronger downside protection. Of the deals that closed this quarter, 13% of late-stage deals had capped or partial participation, meaning investors negotiated the right to not only get their investment back in the case of liquidation but also a cut of the remaining proceeds. That’s twice the number…
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source: https://news.oneseocompany.com/2022/11/01/where-valuations-for-tech-companies-stand-now-in-3-charts-fortune_2022110134872.html
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