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This year, valuations have been top of mind for the entire venture industry as many VCs try to navigate their overvalued portfolios and founders scramble to conserve cash and grow into their high valuations.
One could have predicted that valuations would fall off a cliff. That hasn't happened because venture investing isn't that easy.
The median seed deal pre-money valuation in the US was $10 million, up from $9 million last year. Through the third quarter of this year, the median early-stage valuation was up from a year ago. The late-stage valuation was down from the previous year.
After investors made it seem like they were crazy for coming in at last year's prices, it makes a lot of sense that valuations are still climbing.
Kyle said that we can't forget about the record levels of dry powder
Over the past few years, multi-stage investors and funds with billion-dollar funds have been growing. A lot of investors are still willing to put top dollars into deals even though the amount of capital is still high.
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