This Week in Startups

Series A valuations, M&A in 2024, and M.A.N.G with Jason Shuman and Raja Doddala | E1883

Jan 20, 2024
Jason Shuman and Raja Doddala join the host to discuss startup valuations in 2024, caution for new shareholders, and benefits for existing shareholders. They talk about the changing definitions of funding rounds, importance of product-market fit, challenges faced by startups, and the rise of strategic investing by tech giants. They also touch on the shift to Series A funding, managing liquidity in venture capital, and investor roles and decision making.
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INSIGHT

2024 Series A Valuations Overview

  • Series A median valuations rose to $45.5M, near peak 2022 levels.
  • Market groups startups into moonshots, predictable growers, and fake product-market fit types with distinct value ranges.
INSIGHT

AI Distorting Series A Valuations

  • AI startup valuations significantly distort overall market data.
  • Most series A deals show more realistic revenue multiples (4x-12x), avoiding extreme valuations above 15x.
ADVICE

Hack: Join Founder Sales Calls

  • Join sales calls with founders to directly observe customer interactions.
  • This helps gauge genuine product-market fit beyond founder pitches alone.
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