#196 Q3 US VC Valuations Report Summary

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Q3 US VC Valuations Report Summary

Every quarter, Pitchbook releases their US VC Valuations Report. They have a number of reports and charts on their website that aggregate data on what’s going on across the VC landscape. Some quick takeaways here with pictures / charts:

• ~$4 trillion in value is locked up in VC-backed companies in the US alone

• Overinflated valuations set in 2020 and 2021 burned the willingness of many companies to exit

• Frothy valuations for AI companies

• Rest of the industry: Valuation growth between funding rounds has slowed

• Startups are waiting longer to raise their next round

• Rates of flat and down rounds are at a decade high of 26.6%

• Startups waiting longer to fundraise: 1.4 - 2 years (stage dependent)

• Multiples haven’t rebounded (5.2x price / sales at IPO for VC)

• Secondary discounts are approaching parity: ~20%

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Note: RVVC = Relative Velocity of Value Creation

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