Are tech valuations artificially low, or are we just returning to reality? •


This section yesterday discussed a tranche of data from Carta detailing an evolving venture capital market. We argued that the information gathered showed the existence of a Series C “crunch,” or bottleneck in the capital ladder that startups climb.

As there have been “crunches” at various stages before, the fact that the Serie Cs are particularly stubborn these days may not upset you. But because C rounds can be viewed as the gateway to late-stage startup status, many early-stage tech companies are staring at an ever-widening gap between their Series A and B rounds and their hopeful futures.

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GGV’s Jeff Richards, a venture capitalist with a penchant for tweeting investment banking research (which never bothers us), noticed on Twitter in response to our reporting that while the series C and D rounds look pretty dire today, there is reason to believe that a large number of early late stage companies will have enough cash to be self-sustaining for the next few quarters:


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