How much does a startup cost? Data from Carta

One of the signs of the next “venture winter” is a drop in valuations of companies that are attracting investment. Carta has analyzed the clients of its service over the past three years.

In 2021, a study revealed that the median valuation of a new Series D company was over $800 million, making it very close to achieving unicorn status. In 2023, the average company at the same stage was valued at $222 million.

The decline is also visible at other stages, but the percentage difference is very different. Compared to 2021, Series A valuations are down 8%. Series D valuations are down 73%.

Carta experts believe that in 2024, we should not expect a rapid return of valuations. Interestingly, they call it a return to “full health”.

Or maybe it’s the current valuations that are healthy?