Correction Is Here? What To Expect On Startup Valuations And Round Dynamics Moving Forward

The two years between Jan 1, 2020 to Jan 1, 2022 have been especially bullish for startup fundraising – (i) more money, (ii) at higher valuations, (iii) coming more easily. At Tau Ventures we saw an uptick in general of 40% along these three metrics [this article was written before Instacart cut its valuation by nearly 40%]. Below are historically the norms at least in Silicon Valley: Stage Key Proof Point Dilution Valuation as function of amount raised pre seed powerpoint N/A – convertible 15-20% discount N/A – cap that is 3-5x amount raised seed early seed = prototype late…...