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, 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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Quick takeaways
- Series A valuations have increased by approximately 17% in Q4 2023, reaching peak pricing.
- Late-stage valuations for Series E and beyond have increased by 182% in one year, driven by strategic investments from tech giants.
Deep dives
Startup Valuations in 2024
The podcast episode discusses the current trend in startup valuations for Series A rounds. The median Series A valuation has increased by approximately 17% from $38.8 million in Q3 2023 to $45.5 million in Q4, reaching peak pricing. The valuation landscape varies depending on the type of company, with seed infrastructure deals driven by the AI boom having a median valuation of $39 million. In contrast, predictable growth companies in the B2B SaaS space are going for 8 to 12 times next 12 months revenue. The podcast participants discuss the potential challenges and risks associated with investing in companies with high valuations but little traction.
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