Flat and down rounds close to a third of all deals in 2023
It's a not so pleasant time for start-up founders as valuations decline.
PitchBook reported this week that flat and down rounds for venture capital-backed companies hit a decade-high in the first half of 2024, comprising 28.4 percent of all deals, according to the organization’s Q2 2024 US VC Valuations Report.
The rate of down rounds for start-ups jumped from 7 percent in 2022 to 14 percent in 2023 after the market reset, and flat rounds followed a similar trajectory, from around four percent of deals in 2022 to nearly 10 percent in 2023. Those rates have only climbed in the first half of 2024.
“The pandemic-era highs are long gone, and for many start-ups that means finally coming to grips with a cut to their valuation,” writes Rosie Bradbury in this article.
Like what you've read?
Forward to a friend!