Here’s how far startup valuations fell in Q1 2022

Average startup valuations are in decline, new data indicates.

In March, The Exchange parsed a dataset from Carta, a unicorn whose software helps companies manage their cap table, which showed early indications that the startup valuation market was changing. A look at Carta’s full Q1 data collated by its head of insights, Peter Walker, clarifies the situation: Valuations are in decline, but not evenly.

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Indeed, new data shows a spectrum of declines in the average valuation for startups that Carta has visibility into — thousands of deals from tens of thousands of companies — which matches current venture capitalist chatter that the value of startups has dramatically changed since 2021 highs.

For founders and investors alike, outliers will remain. Some startups will be able to raise like it’s 2021, but for most upstart tech concerns, the old norms are out the window.

This morning, let’s explore new marks from Carta, pulling from raw data, and looking to see where valuations are falling the fastest — and the slowest. If you are building or investing, this is the new reality.

The damage

We’re writing ahead of Carta’s impending report, so we have no pretty charts to borrow from the company’s data team. We’ll roll along in text for today. No matter, starting early and going late, here’s what Carta has to say about valuations: