At the end of last week, I was putting together some charts based on some new third-quarter valuation data PitchBook released last week.
And I have to say I was a bit shocked. After all, numbers can sound rather dramatic. But it’s something else entirely when you can see it visualized. Look for yourself at the incredible decline in median growth-stage valuations over the last two years:
That is a nosedive if I’ve ever seen one. But as of now, the valuations still aren’t lower than they were four years ago: They’ve simply come back down to earth.
As investors have regained the upper hand in the negotiations with late-stage companies, they are also taking larger equity stakes in the companies they are backing. See below:
But what’s interesting is that we’re really not seeing some of these swinging market conditions across the whole ecosystem. Both pre-seed and seed valuations are actually up in 2023 (as of Sep. 30 data), compared to last year, according to PitchBook. And the size of seed deals are actually hitting record highs right now:
What do you think? Sound in line with your own experience? Drop me a note below, if you like.
Have a good day!
Jessica Mathews
Twitter: @jessicakmathews
Email: jessica.mathews@fortune.com
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