Lessons from the USA
August 16, 2023
You probably know we think CB Insights has a lot of interesting data which is relevant to valuations.
It sends a free daily email. if you would like to sign up, here’s the link: https://www.cbinsights.com/newsletter/.
Last night’s email was particularly helpful. This is what Anand, the founder of CB Insights, who writes the email, said:
“Mid- and later-stage tech valuations have absolutely gotten clobbered:
🔻5% for Seed/Angel
🔻30% for Series A
🔻46% for Series B
🔻44% for Series C
🔻63% for Series D+
The late stage — Series D and above — also experienced the sharpest quarter-over-quarter (QoQ) decline (-33%) in Q2’23 as valuations reverted to the mean.
While Q2 valuations ticked up slightly at the seed/angel and Series B stages QoQ, the median valuation was still down across all stages year-over-year.”
You can find the full report HERE.
We always pay particularly close attention to this sort of data, as valuations in the UK tend to follow the same trends seen in the United States.
When we work for clients who have US interests it is directly relevant, naturally. But it is also relevant for UK clients looking to the United States to do business/take US investors onto the cap table.
Do get in touch if you have a client with a business or shareholding, whether it is in the UK, the United States or elsewhere, that might need our help in respect of valuation; this could be asset valuations or company/share valuations.
