Startup valuations are down. Again.

Last month we looked at PitchBook’s estimates for US and Global Venture Capital activity in Q4.

We now have CB Insights’ analysis of Q4 valuations, and it’s worth unpacking

Observations for seed/angel deals:

• Global investment activity was down in Q4. By CB Insights’ estimates, the global number of deals fell 26% from 3,706 in Q1 to 2,737 in Q4
• Median US seed valuation came in at $12.6m (post-money). This is up 3% from Q4 of ’21, but down 22% from a high in Q2 of ’22.

Falling valuations in a falling market is not a great look. It speaks to the general malaise we saw in the market in Q4 of last year.

As I mentioned on Tuesday, ’23 has started with much more buoyancy. But we also see continued uncertainty around the US economy.

Given this, I expect startup valuations in 2023 to continue their see-saw pattern.

You can download CB Insight’s report here.