The data
Industry trends
-24%
3.7x
66%
High-flying valuations come in for a landing
After intense deal competition helped turbocharge fintech valuations in 2021, VC-backed valuations are declining at all stages.
The reset for Series C+ is most pronounced with a 24% decrease from the recent peak — marking a significant shift from October 2021, when the median valuation was $965 million, up 2x from October 2020.
Source: PitchBook and SVB analysis.Caption
Source: SVB proprietary data and SVB analysis.
Companies heed warnings to rein in spending
According to SVB proprietary data, more fintech companies decreased net burn in Q3 2022 than at any point since the onset of the COVID-19 pandemic.
The cuts help illustrate that companies are right-sizing their expenses to match decreased expectations for spending and slower revenue growth.
Web3 funding rush tapers off
VC deal growth in web3 was higher than any other tech sector from 2019 to 2022, with company formations peaking at 237 in Q1 2022. However, formations are beginning to taper, falling by 43% since the peak
The companies seeded from the 2017-18 crypto price boom — and the long tail afterward — built the infrastructure and applications that enabled the recent growth in user adoption. Now, the funds raised during the recent boom may build the foundation for the next Web3 wave.
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1 Forbes, as of June 2022
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