1. General Trends:
• Median tech valuations fell across most stages in Q2’22 compared to Q1’22 but remained higher than in 2021 and significantly elevated compared to 2020.
2. Valuations by Stage:
• Seed/Angel: Median valuation in Q2’22 was $16.5M, down from $17.6M in Q1’22, but up from $11.7M in 2021.
• Series A: Median valuation in Q2’22 was $204M, down from $242M in Q1’22, but up from $194.7M in 2021.
• Series B: Median valuation in Q2’22 was $614.2M, down from $680.1M in Q1’22, but up from $578.7M in 2021.
• Series C: Median valuation in Q2’22 was $1.36B, up from $1.21B in Q1’22 and significantly up from $1.10B in 2021.
• Series D: Median valuation in Q2’22 was $2.00B, down from $2.05B in Q1’22, and down from $2.20B in 2021.
3. Late-stage Deals:
• The volume of late-stage deals declined by 17% QoQ in Q2’22 and is projected to fall 29% YoY by year-end.
• Investors are negotiating greater downside protection, with 41.4% of Series C, D, and E+ deals in the US requiring prioritized payouts for new investors in Q2’22, an increase from 33.1% in Q1’22.
4. Valuation Trends:
• US vs. Non-US Valuations: Non-US valuations saw varied changes, with significant increases in some categories and decreases in others.
• Protective Provisions: The percentage of deals requiring downside protection provisions increased in Q2’22.
5. Projected Changes:
• Deal Volume: Expected to see declines in 2022 compared to previous years.
• Valuation Changes: Expected to continue adjusting as the market corrects from the highs of 2021.