It's once again time to talk about Pre-seed startup valuations (queue crowd roaring in excitement). Let's see what over 3,000 US startups who applied to @HustleFundVC in 2022 can tell us about the current state of fundraising and valuations.
#startups #entrepreneurship
First - What we have seen recently. Valuations have overall decreased for pre-seed startups in the 4th quarter. The gains we saw from the first half of the year have, by and large, been erased
Interestingly enough, while valuations have retreated, the volume of deals we are seeing has not (except for some normal seasonality)
Driving the correction in pricing are the earlier deals we are seeing. Startups that are pre-MVP & revenue saw the most significant declines in 4Q22
Drilling in a bit more, pre-product startups have been hit the hardest, seeing a roughly 50% decline in valuations. As
@MartinGTobias has said. - the days of big valuations for idea-stage companies seem to be behind us for now
Finally, round sizes have stayed pretty stable in % terms, with a slight downtick in dollar terms
I have some more detailed graphs here in case you want to go down the data rabbit hole a bit more notion.so/hustlefund/Pre-seed-Valuations-Dec-2022-c404ec6c42eb4eb690a28fd93c1ca4ef
As always - Questions and feedback are always welcome. Thanks for stopping by, and have a great end of 2022.