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Dave Mcclure & Jordan Stein on YC, "Spray and Pray", and Games VCs Play | E1923

This Week in Startups

NOTE

Startup Valuations and Success Rates in Seed Funding and Accelerators

Seed fund valuations were between four to $5 million in the US and somewhat lower internationally, while accelerator valuations ranged from one to $2 million. With around two to 400 companies per year, the overall valuations were likely around $3 million. In the initial years, out of the 1,800 companies funded, about 65 to 70% failed, 20 to 25% achieved modest returns of two to five times, 8 to 10% attained substantial gains of 10 to 20 times, and only 2 to 3% became unicorns with returns of 50 to 100 times or more. Additionally, there were rare outliers like Talkdesk, Canva, and Solana, which generated outstanding returns of 1000 times the investment, occurring roughly once in every three to 500 companies funded.

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