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  • Fundraising Environment in 2022 1660961183

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    Juan Carlos Rodríguez
    9 views24 pages
    The document summarizes the state of venture capital fundraising and valuations in 2022. Public markets saw declines of 51-70% as interest rates rose and valuations fell. Founders expect a 31% decline in annual recurring revenue but only an 11% drop in valuations. While private round sizes have remained steady, valuations may be a "mirage" as public equivalents fell 74% on average. The document warns of a coming 40-60% decline in private prices as record dry powder is invested at lower valuations in 2023.

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    Fundraising_Environment_in_2022_1660961183

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    The document summarizes the state of venture capital fundraising and valuations in 2022. Public markets saw declines of 51-70% as interest rates rose and valuations fell. Founders expect a 31% decline in annual recurring revenue but only an 11% drop in valuations. While private round sizes have remained steady, valuations may be a "mirage" as public equivalents fell 74% on average. The document warns of a coming 40-60% decline in private prices as record dry powder is invested at lower valuations in 2023.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    9 views24 pages

    Fundraising Environment in 2022 1660961183

    Uploaded by

    Juan Carlos Rodríguez
    The document summarizes the state of venture capital fundraising and valuations in 2022. Public markets saw declines of 51-70% as interest rates rose and valuations fell. Founders expect a 31% decline in annual recurring revenue but only an 11% drop in valuations. While private round sizes have remained steady, valuations may be a "mirage" as public equivalents fell 74% on average. The document warns of a coming 40-60% decline in private prices as record dry powder is invested at lower valuations in 2023.

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    © All Rights Reserved
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    of 24

    Traction 2022

    Fundraising
    in 2022
    How Did We Get Here

    01
    Higher interest rates
    02
    Valuations Fall
    03
    Companies Spend Less
    04
    Startups Growth Slows
    05
    Multiple Quartiles Fall
    06
    Crash
    What's Happened

    Public Market
    Market Caps Down 51-60% by Quartile
    IaaS Revenue Growth Slowing by 21% Avg.

    -21%
    Public Multiples Down 57-70%
    Crash Resets Multiples to 2017-2018 Levels
    How Did We Get Here

    01
    Higher interest rates
    02
    Valuations Fall
    03
    Companies Spend Less
    04
    Startups Growth Slows
    05
    Multiple Quartiles Fall
    06
    Crash
    What's Happening

    Founders
    Founders Anticipating 31% Decline in ARR
    But See Only an 11% Decline in Valuations
    Hypothetical Startup Valued Like a Public Co.

    Valuation Q1 2022 Q2 2022 Delta


    Environment

    Growth Rate 300% 225% -25%

    ARR, Y+1, $M 66 47.5 -28%

    Multiple 22 8 -63%

    Valuation, $M 1452 380 -74%


    Public Market & Founders' Expectations

    Disconnect
    What's Happening

    Private Market
    Round Sizes Inline with Trends
    Valuations Also Steady
    But Round Counts Declining by 20%+
    Private Markets Summary

    01
    Publics Down 70%
    02
    Founders Expect 10% Drop
    03
    Private Markets Slowing
    What Will Happen

    The Future
    $290B in Dry Powder
    Softer Landing in Privates

    01
    Record Dry Powder
    02
    Mark-to-Market latency
    03
    Multiple Rebound
    04
    Single Auction Winner
    TLDL

    Summary
    All together now

    01 Publics Down 70%


    02 Privates Steady but it's a Mirage
    03 Expect a 40-60% Decline in Price
    04 Volumes Should Increase Early 2023
    Finish line

    Thank you

    tomtunguz.com

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