Early-stage VC valuations are more reasonable than they appear

Investors hoping for a steep drop in early-stage startup valuations have so far been disappointed, but prices for these companies are cheaper than they first appear—signaling an era for better returns may be on the horizon.

Early-stage startup valuations have remained sticky despite a steep downturn in venture capital investment. The median US VC early-stage pre-money valuation was $45 million in the first half of 2024, about the same as in 2022. READ MORE