2024-02-22-PitchBook-2023年第三季度美国风险投资报告_25页_5mb

C US - VC Valuations Report Summary

Core Content

This report from PitchBook and Morgan Stanley at Work analyzes current trends in venture capital (VC) valuations across different stages of private company growth, highlighting the impact of economic uncertainty and liquidity pressures on fundraising and valuation dynamics. It also explores how secondary transactions can serve as a solution for private company liquidity needs.

Main Points

• Private Company Liquidity Pressure: 59% of private company decision-makers are under increased pressure to conduct a liquidity event due to prolonged private status and economic uncertainty.
• IPO Market Quiet: The overall IPO market remains subdued, with only 27 public exits worth $21.9 billion in Q3, far below previous years. Notable companies like Instacart and Klaviyo went public at reduced valuations, signaling caution for unprofitable high-growth startups.
• M&A Activity: M&A deals have seen an increase in median valuations, reflecting a growing preference for established, high-performing companies.
• Pre-seed and Seed Markets Resilient: These early-stage markets have remained relatively stable despite macroeconomic headwinds. The Q3 median seed deal size hit a record high of $3.3 million, and pre-seed deal sizes and valuations are largely unchanged from 2022.
• Location Impact on Valuations: Pre-seed deal sizes vary significantly by location, with California having a higher median deal size ($900,000) compared to Texas ($400,000).
• Early-stage Valuations: Early-stage deal metrics have fallen to near-decade lows, with a 35.3% RVVC (relative velocity of value creation) and a 1.7x step-up. Founders are now required to give up nearly 25% of equity in early-stage rounds, indicating a more demanding investor landscape.
• Late-stage Valuations: Late-stage startups have experienced significant valuation compression, with the Q3 median pre-money valuation reaching $63.0 million. The median time between rounds for late-stage companies has increased to 1.72 years, suggesting they were overcapitalized during the 2021-2022 peak.
• Venture-growth Valuations: This stage has seen the most drastic compression, with the 2023 YTD median pre-money valuation dropping to $129.6 million (a 65.2% decline from 2021). The median share acquired reached a decade high of 14.9%, and the median time between rounds hit a five-year high of 1.46 years.
• Secondary Transactions as a Solution: Morgan Stanley at Work emphasizes the role of secondary transactions in addressing liquidity needs. These transactions provide a structured way for employees and investors to realize value, especially in a market where IPOs are less attractive.
• Investor Behavior: Secondary investors are increasingly focused on high-quality, sustainable companies, leading to a material bid-ask spread. Nontraditional investors have pulled back, increasing the demand for secondary liquidity.

Key Information

• Pre-seed and Seed:
  • Q3 2023 median seed deal size: $3.3 million (record high).
  • Median pre-seed deal size: $500,000.
  • Median pre-seed pre-money valuation: $5.7 million.
  • Median seed pre-money valuation: $12.0 million.
• Early-stage:
  • Q3 2023 median deal size: $5.0 million.
  • Median pre-money valuation: $40.0 million.
  • RVVC (relative velocity of value creation) for early-stage: 35.3% (near-decade low).
• Late-stage:
  • Q3 2023 median deal size: $5.9 million (8.0% decrease from previous quarter).
  • Median pre-money valuation: $63.0 million.
  • Median time between rounds: 1.72 years (highest of any stage).
• Venture-growth:
  • Q3 2023 median pre-money valuation: $129.6 million (65.2% decline from 2021).
  • Median time between rounds: 1.46 years (five-year high).
  • Median share acquired: 14.9% (decade high).

Secondary Transactions

• Morgan Stanley at Work offers company-sponsored liquidity programs, enabling structured secondary transactions for employees and investors.
• Secondary transactions help companies retain talent, provide liquidity to investors, and allow employees to realize equity value.
• The firm has executed over 100 private liquidity events and $19 billion in secondary transaction volume as of Q3 2023.
• Secondary markets are becoming more important due to the lack of IPO activity and the pullback of nontraditional investors.

Conclusion

The VC landscape is evolving with increased liquidity pressure, compressed valuations, and a shift in investor focus. Secondary transactions are emerging as a critical tool for private companies to manage liquidity needs and maintain transaction readiness. The report underscores the importance of a tailored approach to liquidity strategies, especially for venture-growth startups, which face the most severe valuation challenges.