Private Markets and Governance in Silicon Valley

Boardroom Governance Newsletter #41 | June 1, 2023

Art by DALL·E 2

“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.…