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PitchBook Analyst Note: Venture Capital in the Great Recession

2Q 2019

PitchBook Analyst Note: Venture Capital in the Great Recession

April 25, 2019

PitchBook Analyst Note: Venture Capital in the Great Recession
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While private market funds invested during recessionary periods have demonstrated resilience, there is more research to be done around company-specific performance and venture activity during crises, especially given VC's reliance on the performance of outlier investments. For the consideration of investors and companies alike should another crisis arise, this analyst note offers insight into the outcomes of startups that received their first venture financings in the Great Recession. Metrics reviewed in the report include time between first and second VC rounds, step-up multiples from post-money valuation of the first round to pre-money valuation of the second round and the proportion of bankruptcies following a first financing round.