Let’s stop pretending there are silos in startup land – MovieUpdates

I have been thinking a lot about silos, or the lack of them, within startup land. There is sometimes an artificial wall that is built between companies in different growth phases, when in reality everyone is in the same room, clattering glasses and tripping over the same rug.

Let me be more precise. With the late-stage market cool for tech companies, many novice investors say their portfolio companies aren’t too affected because they are years away from an exit and have enough capital to weather uncertainty. The same energy was on display at MovieUpdates Early Stage this week. Peter Boyce II of Stellation Capital leniently told me that based on the term sheet he wrote yesterday, we are definitely still in a founder-friendly market, while a few entrepreneurs didn’t quite subtly remind me that experimental betting is still getting significant rounds of funding. yield .

I believe in optimism and see this time in early stage startups as a re-correction, not a reckoning. But new PitchBook and NVCA data shows that dollars are changing across the board.

The latest report says venture-backed companies drew nearly $71 billion in the first quarter, behind every quarter in 2021, but still above pre-pandemic totals. The research team digs deeper into the seed stage, reporting that seed deal size is beginning to look more toward historical norms than outrageous absurdities (OK, OK, I made that last part up). At the same time, valuations continue to grow with the median pre-money valuation of $12 million. A nice dichotomy that investors have to pay a pretty penny for.

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