Deals and dollars: SaaS investment still strong
Although investment has slowed down amid a tougher macroeconomic backdrop, deals continue at a healthy pace with record dry power ready for deployment.
Notable investors are still averaging 20 to 30 global VC deals per month.
Source: PitchBook and SVB analysis.
Source: PitchBook and SVB analysis.
Softening valuations: Which areas are shielded?
The early-stage remains resilient as the later-stage sees softening given its stronger connection to public comparables.
Subsectors such as cyber as well as startups located on the urban coasts are continuing to command a premium, with median valuation step-ups well above the rest.
Will down rounds see an upturn?
While our analysis has yet to register a major uptick in the number of down rounds, market chatter reflects a growing number of startups discussing flat or down-round financing.
Debt financing requests are on the rise as startups begin to hedge against a tougher equity market heading into 2023.
Source: PitchBook, SVB proprietary data and SVB analysis.
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