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

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Jan 20, 2024

Guest

Raja Doddala

Guest

Jason Shuman

Jason Shuman, a general partner at Primary Ventures, and Raja Doddala, head of venture capital at Churchill Asset Management, dive into the evolving startup valuation landscape for 2024. They discuss the increase in Series A median valuations and the challenges tied to sustainable investment, especially in the AI sector. Insights on securing attractive deals in a competitive market are shared, along with anecdotes about funding complexities and the dynamics of late-stage investments. The conversation also highlights the importance of realistic valuations and strategic decision-making.

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INSIGHT

Series A Valuations

Series A valuations are reaching peak pre-2022 levels, driven by high-flying AI startups and increased capital availability.
Traditional B2B SaaS companies see more reasonable valuations based on NTM revenue multiples.

ADVICE

Focus on Current Revenue

Focus on current revenue and traction, especially with AI startups.
Evaluate companies based on their last three months' average revenue, not just next-year projections.

INSIGHT

AI Commoditization

Large language models are becoming commoditized, similar to cloud storage providers.
This commoditization makes it difficult to justify high valuations for AI companies without substantial revenue.

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