Tunguz predicts average seed valuation caps will drop to $5M–$7M
Tomasz Tunguz · 20VC: Tom Tunguz on Why Now Is The Best Time To Be Investing and The Effect of Late Stage Valuations on Startups · Mar 7, 2016 · at 5:15
Tom Tunguz, partner at Redpoint Ventures, analyzes early-stage valuation trends following a contraction in public SaaS market multiples in early 2016.
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“Seat valuations, from what I've seen, are falling. I remember maybe like a year ago, you know, the high watermark for like Y Combinator companies was something like a twenty million cap or an unlimited cap, and I think you'll see maybe one or two of those, but I think on the average you'll probably see five to seven million caps for a lot of the companies, and that's a pretty meaningful drop.”
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