Unyielding Pre-Seed and Seed-Stage Valuations in US Venture Capital

The latest report from Pitchbook reveals that despite pricing pressure in the US venture capital market, pre-seed and seed-stage valuations have not dipped below 2021 highs. The report states that small funds under $50m have made up more than 50% of fundraising counts, maintaining competition in the market. The report also noted that late-stage valuations have declined due to challenges such as limited exit avenues for mature startups. The median time between funding rounds for Series D+ startups in 2023 was 1.78 years, the lengthiest duration observed in over a decade. Looking ahead to 2024, Pitchbook expects these trends to continue, with limited exit opportunities and a cautious approach likely due to economic and geopolitical uncertainties.