State of Consumer Internet 2023

A new landscape emerges

Key takeaways

The current consumer tech landscape remains challenging. Economic growth has slowed, capital is scarce and consumer confidence hovers near an all-time low. Yet, this is the type of environment where disruptors are born. With careful navigation, consumer tech companies can take advantage of leaner times and shifting consumer preferences to build better businesses and transform themselves into market leaders.


US VC investment year-over-year (YoY) increase in commerce enablement — an encouraging statistic in a difficult fundraising year for most consumer tech subsectors.

1 .5X

Median burn multiple for early-stage companies in Q4 2022, down from a high of 3.1x in Q1, as consumer tech companies pivoted towards profitability and reduced cash burn.


Median valuation step-up from seed to Series A, a slight drop from 2021 but higher than the 2.8x step-up in 2020, an indication that VC demand remains strong for early-stage consumer startups.