Startup Valuations Haven't Hit Bottom Yet
from the can-still-go-lower dept
While it’s clear that private company valuations have been dropping over the past few years, some think that they can still go much lower. Seed rounds are now at about the level they were in 1996. Some think the higher valuations are due to the supply – there’s still too much cash sitting in the pockets of VCs who need to put it somewhere. However, some VCs defend the valuations, saying that the startups approaching them these days (while not as frequently) usually have better plans, more experience, and stronger management teams.