Funding Fridays
Dave Hoefler
Happy Friday!
Welcome to Funding Fridays – a briefing on startup funding.
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The VC Pullback
No VC wants to do “a 2022 deal at a 2021 valuation”, but what is a 2022 deal exactly?
We’ve certainly come down from the 100x-200x ARR craziness but there’s still the odd financing round that gets done at those levels. Founder expectations are all over the place, with many still living in the 2020-2021 valuation world. The general perception amongst VCs is that deals are still very expensive.
Only two parts of the market have been spared thus far: (1) Seed. Arguably, the seed stage should be the most recession-proof area of venture, because seed companies are 6-10 years away from a meaningful exit, the checks are smaller. (2) Crypto. The web3 market largely follows its own logic. And after an explosion of crypto VC funds, there’s arguably a lot more money chasing deals, than truly exciting companies and projects just yet.
One variable that seems to be changing is round size expectations, perhaps as a precursor to lower valuations. The inflation there has slowed down considerably. Over the last couple of years, Series A rounds had ballooned from $12M-$15M to $20M. It seems that the $20M Series A has largely disappeared, and I’m seeing asks back down to $10M-$15M.
The hardest question is whether startups should rush to the financing market now and get a round done before things get too bad. That’s highly case specific, but if you’re getting to 12 months of cash runway or less, it might make sense to raise funding sooner rather than later. At a minimum, financing processes are taking much longer than they did in the last couple of years. Matt Turck (17 minutes)
Pre-Seed
Money Raised – $525,000
Median amount raised in startup Pre-Seed funding on May 06, 2022.
Westaway
Pre-Money Valuation – $3,000,000
The median valuation of a startup Pre-Seed funding on May 06 2022
Westaway
Seed
Money Raised – $2,733,076
The median amount raised in startup Seed funding on May 06, 2022.
Westaway
Pre-Money Valuation – $14,261,280
The median valuation of a startup Seed funding on May 06 2022
Westaway
Series A
Money Raised – $13,300,000
The median amount raised in startup Series A funding on May 06, 2022.
Westaway
Pre-Money Valuation – $60,058,915
The median valuation of a startup Series A funding on May 06, 2022.
Westaway
Series B
Money Raised – $30,000,000
The median amount raised in startup Series B funding on May 06, 2022.
Westaway
Pre-Money Valuation – $133,067,938
The median valuation of a startup Series B funding on May 06, 2022.
Westaway
Series C
Money Raised – $67,500,000
The median amount raised in startup Series C funding on May 06, 2022.
Westaway
Pre-Money Valuation – $840,000,000
The median valuation of a startup Series C funding on May 06, 2022.
Westaway
About Funding Fridays
Funding Fridays is a two-minute Friday morning briefing on startup funding written by Kyle Westaway – Managing Partner of Westaway.
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Source by www.forbes.com
