Startup reviews – in particular In the later stages – they have declined significantly over the past year and a half of the ongoing market correction. Companies that once boasted high valuations like Klarna and Getir have seen their valuations decline in recent funding rounds.
Outside of Klarna and Getir, though, very few late-stage companies have raised new seed rounds since the buoyant 2021 market. This means that secondary data is one of the few sources the market can turn to to learn what investors think the true value of these companies is today. Spoiler: No one thinks they’re still worth the 2021 price.
For example, neobank Chime, which is hoping for a 2021 IPO, was valued at $6.5 billion in a secondary deal that closed on Monday, according to data from Caplight. This is a significant reduction from the $25 billion valuation it received in 2021. Cryptocurrency exchange Kraken was valued at $1.4 billion in a recent secondary sale, which is well below its recent seed round’s valuation of $10 billion.
This made me wonder: Are the ratings in the last stage as low as they are going to be? Market signals suggest that this may be the case; The IPO window appears to be on track to open again in 2024, and public markets are starting to regain their strength.
A recent survey of secondary venture investors found that for those focused on the industry, many believe prices may still have room to fall.