Is the VC dealmaking environment better for startups or investors?
December 15, 2021
Using PitchBook's wealth of data on VC deal terms, valuations and fundraising, we've constructed our VC Dealmaking Indicator, which captures how startup- or investor-friendly the deal environment is in the early- and late-stage markets.
- To construct the indicator, we encoded five different deal terms as well as the time between rounds, valuation step-ups and percent of ownership acquired. We've also included a new metric that seeks to estimate the supply and demand of capital in the VC market.
- Currently, both the early and late stages are quite startup-friendly, with the recent uptick in median valuation step-ups driving a large portion of that trend. Historically, we see that early-stage deals tend to be more startup-friendly when compared to late-stage deals.
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