The late-stage venture capital-backed company's median valuation was about $60 million in the second quarter, according to PitchBook Data's quarterly U.S. VC Valuations Report. While that was up 19.3% from the first quarter, it is below the $80 million reached in the third quarter of 2021, the highest since at least 2013. The quarterly increase was larger, 28.1% to about $143 million, at the 75th percentile. At the 25th percentile, the valuation only increased by 4% from the previous quarter.
Late-stage venture capital valuations below 2021 levels
The median increased valuation from the previous round, or step-up valuation, rose to 1.45 times from the second quarter's 1.34 times. It rose to 2.17 times from 1.9 times at the top quartile. PitchBook attributes this to investors selectively allocating capital to the highest-quality companies.