Founders have been going through a big reality check for several months now: What they thought their startup was worth, or could be worth, is very different from what venture investors are willing to pay for it right now. And the more data we get, the more that trend has played out: Valuations for even early-stage companies kept plummeting in Q1, while flat and down rounds are creeping higher.
Per a recent PitchBook report, the median pre-money valuation for early-stage startups in the U.S. sunk to $38.2 million in the first quarter, down 5.7% from the prior quarter and a whopping 63% below Q1 of 2022, as general partners turned more cautious amid the liquidity crunch, the PitchBook authors noted.
