Private Markets and Governance in Silicon Valley
Boardroom Governance Newsletter #41 | June 1, 2023
“The transformation of the venture capital industry over the past year has been stark. Total venture capital raised by startups plunged 80% from Q1 2022 to Q1 2023. Venture deal count fell 45% over the same span. Overall, Q1 was the slowest quarter for both capital raised and deal count since 2017.”
“There are signs of a venture spring. Valuations from seed to Series C ticked up from recent lows. Median round sizes mostly stabilized. But these green shoots were overwhelmed by the decline in total rounds across all stages.” ~ From Carta’s State of Private Markets: Q1 2023
Some other Q1 2023 highlights include:
Down rounds spiked in frequency: “Just shy of 20% of all venture investments in Q1 were down rounds, the highest proportion since at least 2018. A year ago, barely 5% of venture deals resulted in a reduced valuation.”
More companies chose bridge rounds: “For companies ranging from Series A to Series C, bridge rounds have emerged as an increasingly attractive option.…
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