Quarter-End Insights

Venture Capital Outlook: A Spirited VC Market Will Continue to Elevate Valuations and Attract New Investors

PitchBook
  • Elevated levels of capital availability and competition at the early stage is leading early-stage valuation step-ups to historic highs.
  • Strong returns for VC investors in recent years and the precipitous rise of valuations over the last decade, have encouraged a host of new entrants into the ecosystem.
  • The VC asset class may be nearing a ceiling on reasonable fund size for startup financings, as investors run the risk of overpaying in deals given high levels of competition for too-few quality investment opportunities.