How US VC valuations stood up to pandemic volatility
March 2, 2021
Both early- and late-stage valuations in the US reached new heights in Q4 2020, a strong end to a volatile year that once seemed destined to be defined by uncertainty. The median late-stage figure hit $120 million last quarter, 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 how record dry powder, a flight to quality and a market rally all fueled the surge. Key takeaways include:
Our 2020 Annual US VC Valuations Report examines how record dry powder, a flight to quality and a market rally all fueled the surge. Key takeaways include:
- Participation from nontraditional investors helped keep valuations elevated—especially at the upper quartile.
- Prices for companies going public rose 39%, putting median valuations at a new high of $510 million.
- Valuations declined at only the angel and seed stages as investors sought higher returns from riskier investments.