Venture capital valuations continue to move higher across all stages. The most significant increase was at the late stage, where the median pre-money valuation as of 1Q 2018 pushed to $75 million, a 19% increase from 2017. The median time between VC rounds remains extended, sitting at 1.4 years for angel & seed and early-stage rounds and 1.8 years for late-stage, compared to long-term averages of 1.2 and 1.5 years, respectively. Extended hold times have caused some apprehension in the VC community; however, VCs appear willing to continue funding companies for prolonged periods in private markets. While we continue to see valuation increases across all stages, this is not driven by an increase in investor protections and terms. For example, the percentage of deals with cumulative dividends, as well as those with participation rights, fell steadily over the past decade and hover at or near prior lows so far in 2018.
VC
Valuations
1Q 2018
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Contents
Key Takeaways
3
Overview
4
Spotlight: Pre-seed Valuations
7
Valuation Step-ups
9
Spotlight: Exit Valuation Step-ups
10
Corporate VC Valuations
11
Deal Terms
12
Credits & Contact
PitchBook Data, Inc.
John Gabbert Founder, CEO
Adley Bowden Vice President,
Market Development & Analysis
Content
Joelle Sostheim Analyst
Cameron Stanfill Analyst
Darren Klees Data Analyst
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methodologies.
Key takeaways from the analysts
• Venture capital valuations continue
to move higher across all stages. The
most significant increase was at the
late stage, where the median pre-
money valuation as of 1Q 2018 pushed
to $75 million, a 19% increase from
2017.
• The median time between VC rounds
remains extended, sitting at 1.4 years
for angel & seed and early-stage rounds
and 1.8 years for late-stage, compared to
long-term averages of 1.2 and 1.5 years,
respectively. Extended hold times have
caused some apprehension in the VC
community; however, VCs appear willing
to continue funding companies for
prolonged periods in private markets.
• While we continue to see valuation
increases across all stages, this is
not driven by an increase in investor
protections. For example, the
percentage of deals with cumulative
dividends, as well as those with
participation rights, fell steadily over the
past decade and hover at or near prior
lows so far in 2018.
19% increase
in late-stage median pre-
money va