VC Valuation: Global and Brazil Analysis
Old normal is the new normal
New normal. That’s something we all heard hundreds of times during COVID heights back in 2020 and 2021. However, living with the virus may not be the only change to deal with these days as during 2022 we were presented with a new situation reality investing wise. Meaning that valuations, traction and amount raised per round have also gone for a ride as early signs of the regression to the mean. As Fred Wilson from Union Square Ventures wrote in his blog “I believe that “new normal” is more or less where we were in 2015 where seed rounds were done around $10mm, A rounds were done around $15mm to $25mm, B rounds were done around $25mm to $50mm, and growth rounds had a cap at 10x revenues”. Such changes won’t happen as swiftly as liquid markets have, since private companies hold the benefit of extending runways through cost cuts to postpone future rounds. Download the paper that exposes the analysis based on the data shared by multiple sources in the past weeks from Seed to Series D rounds while also zooming in Brazilian medians with the goal of providing support to both capital allocators and entrepreneurs’ strategy looking to fundraise in the near future.
Click to download the paper.