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US VC Valuations Report

2020 Annual

US VC Valuations Report

March 1, 2021

How US VC valuations stood up to pandemic volatility

Both early- and late-stage valuations in the US reached new heights in Q4 2020, resulting in a strong end to a volatile year that at first seemed destined to be defined by uncertainty. The median late-stage figure hit $120 million in Q4, surpassing $100 million for the first time, and the early stage continued its steady growth to set a record quarterly median of $35 million.

Our 2020 Annual US VC Valuations Report examines the ways a convergence of factors—including record dry powder, a flight to quality, and the market rally—helped drive the surge. Key takeaways include:

•    Sustained participation from nontraditional investors helped enable valuations to remain elevated—especially at the upper quartile.

•    The median public listing size climbed above $510 million, a 39% increase year-over-year and part of a surprisingly successful exit market on the heels of 2019's all-time record.

•    Valuations declined at only the angel and seed stages as investors sought higher returns from riskier investments.