Average Start Ratings are in decline, new data indicates.
In March, The Exchange analyzed a dataset from Carta, a unicorn whose software helps companies manage their capitalization table, showing early signs that the startup valuation market was changing. A look at Carta’s full Q1 data compiled by its Chief Knowledge Officer, walking pedro, clarifies the situation: Valuations are declining, but not uniformly.
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Indeed, the new data shows a spectrum of declines in the average valuation of startups in which Carta has visibility: thousands of tens of thousands of companies – which coincides with current talk from venture capitalists that the value of startups has changed dramatically since the 2021 highs.
For founders and investors alike, outliers will remain. Some startups will be able to raise funds like it’s 2021, but for most emerging tech concerns, the old norms are out the window.
This morning, let’s explore new Carta brands, pulling raw data and looking at where valuations are falling fastest and slowest. If you are building or investing, this is the new reality.
The damage
We’re writing ahead of the impending Carta report, so we don’t have any pretty charts to borrow from the company’s data team. We will continue with today’s text. Never mind, starting early and running late, here’s what Carta has to say about valuations:
