What Is Your Business Worth This Year?

What a difference a year makes in valuations of small businesses.

I came across some interesting data from Cooley on pre-money valuations of private companies between Q4 2021 and Q4 2022.

These are pre-money valuations between the two years:

Series D and later $1.3 billion vs. $290 million (-78%)

Series C $331 million vs. $228 million (-31%)

Series B $300 million vs. $95 million (-68%)

Series A $71 million vs. $39 million (-45%)

Seed $14 million vs. $15 million (2%)

This comes as no surprise for those in the market. My advice is that if you do not have to raise money this year, don’t unless your business is growing rapidly. If you must, perhaps get a convertible note that is prices at whatever the next round is.