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US VC Valuations Report

Q3 2021

US VC Valuations Report

November 9, 2021

US VC Valuations Report
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US VC valuations ascension continues

Valuations of VC-backed companies continued their dizzying climb across most stages in the third quarter of the year.
PitchBook’s latest VC Valuations Report is chock full of data and must-read analysis about how startup valuations have changed amid the frenzied dealmaking pace over the last few quarters.

Key takeaways
 
  • Early-stage VC is the relatively strongest segment of the venture lifecycle as late-stage and growth investors have been backing younger companies. Our analysis shows that valuations at this stage have more than doubled on an annualized basis
 
  • Increased competition for most promising seed-stage startups has pushed the pre-money valuations of top-quartile companies to $15 million, creating an unprecedented spread of $10 million above bottom quartile seed-stage valuations.
 
  • While late-stage valuations declined slightly quarter over quarter, our analysis shows that half of all late-stage financings in the last four quarters raised new capital at more than double their previous valuations.
 
  • Exit demand likely reinforced VC valuation growth. Public listing step-ups advanced to 1.8x in Q3 while the median valuation step-up for acquisitions swelled to 2.8x, the highest increase on record.

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Table of contents
Key takeaways 2
Angel and seed 3
Early-stage VC 5
Late-stage VC 8
Biotech and pharma 11
Climate tech 13
Enterprise tech 15
Consumer tech 17
Nontraditional investors 19
Liquidity 22
Deal terms 24