Drawing on CB Insights data, Mads Jensen reports that global seed and angel deal numbers and US seed valuations fell in Q4 2022, and expects startup valuations in 2023 to keep see-sawing amid uncertainty about the US economy.
- CB Insights estimated that the global number of seed and angel deals fell 26%, from 3,706 in Q1 2022 to 2,737 in Q4.
- The median US seed valuation in Q4 2022 was $12.6m post-money, up 3% on Q4 2021 but down 22% from the Q2 2022 high.
- Despite a more buoyant start to 2023, Mads Jensen expected valuations to continue a see-saw pattern.
Startup valuations are down. Again.
Last month we looked at PitchBook’s estimates for US and Global Venture Capital activity in Q4.
We now have CB Insights’ analysis of Q4 valuations, and it’s worth unpacking
Observations for seed/angel deals:
- Global investment activity was down in Q4. By CB Insights’ estimates, the global number of deals fell 26% from 3,706 in Q1 to 2,737 in Q4
- Median US seed valuation came in at $12.6m (post-money). This is up 3% from Q4 of ’21, but down 22% from a high in Q2 of ’22.
Falling valuations in a falling market is not a great look. It speaks to the general malaise we saw in the market in Q4 of last year.
As I mentioned on Tuesday, ’23 has started with much more buoyancy. But we also see continued uncertainty around the US economy.
Given this, I expect startup valuations in 2023 to continue their see-saw pattern.
You can download CB Insight’s report here.
Frequently Asked Questions
What was the median US seed valuation in Q4 2022?
According to CB Insights, it was $12.6m post-money, up 3% on Q4 2021 but down 22% from its peak in Q2 2022.
What did SuperSeed expect for startup valuations in 2023?
Mads Jensen expected them to continue a see-saw pattern: 2023 had started with more buoyancy, but uncertainty about the US economy remained.