Tech

Valuations
Report
Q3 2022
 Q3'22 Tech Valuations Report

Declines in tech valuations deepen

amid increasing market volatility.
Median tech company valuations declined across most stages as investors continued
to limit their risk exposure in Q3’22. Notably, declines in mid- and late-stage valuations
accelerated, with Series D+ valuations falling by 27% quarter-over-quarter (QoQ),
bringing them nearly to 2020 valuation levels. Deal volume was equally stark, falling
by more than 20% QoQ across most stages, indicating that investors remain cautious.

How the valuations compare

Q3’22 Q2’22 Q3’22
Median valuations vs. Q2’22 vs. Q1’22 vs. 2021

$ 18 .0 M
$ 16 .0 M
$15.1M
$ 15 .0 M $ 14 .0 M

Seed/
-10% +13% +29%
$ 12 .0 M
$ 10 .0 M $ 10 .0 M
$ 8.0 M
$ 5.0 M
$11.7M $ 6.0 M
$ 4.0 M
$ 2.0 M
$14.8M $16.7M Angel
$ 0.0 M $ 0.0 M

2021 2022 2022 2022

Q1 Q2 Q3

$ 80 .0 M $64.9M
$ 70 .0 M
$ 60 .0 M $ 60 .0 M

+1% -9% +20%

$ 50 .0 M

Series A
$ 40 .0 M $ 40 .0 M

$54.3M $70.7M $64.0M

$ 30 .0 M
$ 20 .0 M $ 20 .0 M
$ 10 .0 M
$ 0.0 M $ 0.0 M

2021 2022 2022 2022

Q1 Q2 Q3

$172.6M
$ 25 0 .0M $ 30 0 .0M
$ 25 0 .0M
$ 20 0 .0M
$ 20 0 .0M

-16% -15% -11%

$ 15 0 .0M

Series B
$ 15 0 .0M

$194.8M $241.2M $204.6M

$ 10 0 .0M
$ 10 0 .0M
$ 50 .0 M $ 50 .0 M
$ 0.0 M $ 0.0 M

2021 2022 2022 2022

Q1 Q2 Q3

$ 70 0 .0M
$ 60 0 .0M
$ 70 0 .0M
$ 60 0 .0M $457.4M
$ 50 0 .0M $ 50 0 .0M

-25% -4% -21%

$ 40 0 .0M

Series C
$ 40 0 .0M
$ 30 0 .0M $ 30 0 .0M
$ 20 0 .0M
$ 10 0 .0M
$578.4M $ 20 0 .0M
$ 10 0 .0M
$632.6M $607.1M
$ 0.0 M $ 0.0 M

2021 2022 2022 2022

Q1 Q2 Q3

$ 2.0 B

$ 1.5 B
$ 1.8 B
$ 1.6 B
$ 1.4 B
$1.1B
$ 1.2 B

-27% -6% -31%

$ 1.0 B

Series D+
$ 1.0 B $ 0.8 B

$ 0.5 B $1.6B $ 0.6 B

$ 0.4 B
$ 0.2 B
$1.6B $1.5B
$ 0.0 B $ 0.0 B

2021 2022 2022 2022

Q1 Q2 Q3

2
 Q3'22 Tech Valuations Report

Despite smaller deal sizes,

investors continue to push for
downside protection.
Across stages, median deal sizes declined an average of almost 29% QoQ in Q3’22, but
the trend was most significant for late-stage deals, whose median size fell by 50% —
sinking below the 2020 median. Despite smaller deals, investors continued to negotiate
stronger downside protection, with 13% of late-stage deals in the US including capped
or full participation rights in Q3’22 — more than twice the rate seen in full-year 2021.

US late-stage liquidation participation rights

1 00 % 1 00 %

9 0%
95.9% 95.3% 9 0%
96.9% 92.9% No
participation
8 0%

87.0%
8 0%

7 0% 7 0%

6 0% 6 0%

5 0% 5 0%

4 0% 4 0%
Capped
3 0% 3 0%
or full
participation
2 0% 2 0%

7.1%
13.0% +5.9
1 0%
4.1% 4.8% 1 0%
3.1% percentage points
0% 0%
QoQ
2020 2021 2022 2022 2022
Q1 Q2 Q3

Full participation rights refers to an investor's right to not only receive its investment back in a liquidation event, but also receive a share of
the remaining proceeds in proportion to its ownership stake in the company. Capped participation is similar, except with a cap on the total amount
an investor can receive back on its investment.

Late-stage median deal size

$ 12 0 .0M
$ 12 0 .0M

$ 10 0 .0M
$ 10 0 .0M

$ 80 .0 M
$ 80 .0 M

$ 60 .0 M $ 60 .0 M
$50.0M
$ 40 .0 M $ 40 .0 M

-50%
$60.2M $110.0M $114.4M $100.0M
$ 20 .0 M

QoQ
$ 20 .0 M

$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

3
Q3'22 Tech Valuations Report

Contents

Seed/Angel 5
Series A 8
Series B 12
Series C 15
Series D+ 18
Methodology 21

About this report

This report will help you understand private market technology
company valuations based on CB Insights valuation data. We define
“technology companies” as businesses that primarily generate
revenue from proprietary and/or differentiated software, hardware,
or platforms. This report will help you see:
• Technology valuation trends over time by stage and where
there is relative strength and weakness
• Where technology valuations today stand relative to
historical technology valuation benchmarks
• Protective provisions on US deals and whether they’re
increasing or decreasing over time

4
Seed/Angel

Global median valuations

Q3’22 vs. Q3’22 vs.

Round Size 2021 H1’22 Q3’22
H1’22 2021

<$2.5M $6.5M $7.3M $8.9M +22% +37%

$2.5-$5M $13.4M $15.8M $16.7M +6% +25%

$5-7.5M $19.9M $24.0M $21.9M -9% +10%

$7.5M+ $50.0M $50.7M $49.8M -2% 0%

5
Q3'22 Tech Valuations Report | Seed/Angel GLOBAL

Seed/angel funding and valuations

12,992 70
, 00
1 4, 0 00
9,348 60
, 00 2022 Projected
1 2, 0 00
50
, 00 3,495 3,320 3,087
1 0, 0 00

80
, 00
40
, 00 13,203 deals
Deal volume
30
, 00
60
, 00

40
, 00 20
, 00

20
, 00 10
, 00 +2% from 2021
0 0

2020 2021 2022 2022 2022 +41% from 2020

. Q1 Q2 Q3

Q3’22 Q3’22 Q3’22

$ 2.0 M $ 2.0 M
$1.6M vs. vs. vs.
Q2’22 2021 2020
$ 1.8 M $ 1.8 M
$ 1.6 M $ 1.6 M
$ 1.4 M $ 1.4 M

Median
$ 1.2 M $ 1.2 M
$ 1.0 M $ 1.0 M
$ 0.8 M $ 0.8 M

deal size $ 0.6 M $ 0.6 M

$ 0.4 M
$1.0M $1.4M $ 0.4 M
$1.9M $1.9M
-16% +14% +60%
$ 0.2 M $ 0.2 M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 4.0 M

$ 3.5 M
$ 4.0 M

$ 3.5 M
$3.2M
$ 3.0 M $ 3.0 M
$ 2.5 M

Average
$ 2.5 M
$ 2.0 M $ 2.0 M
-6% +10% +60%
deal size
$ 1.5 M $ 1.5 M

$2.0M $2.9M $3.8M $3.4M

$ 1.0 M $ 1.0 M
$ 0.5 M $ 0.5 M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 18 .0 M
$ 16 .0 M
$ 18 .0 M $15.1M
$ 16 .0 M
$ 14 .0 M $ 14 .0 M
$ 12 .0 M

Median
$ 12 .0 M
$ 10 .0 M

+29% +66%
$ 10 .0 M
$ 8.0 M $ 8.0 M -10%
valuation $ 6.0 M $ 6.0 M
$ 4.0 M
$ 2.0 M
$9.1M $11.7M $ 4.0 M
$ 2.0 M
$14.8M $16.7M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$50.5M
$ 70 .0 M $ 70 .0 M
$ 60 .0 M $ 60 .0 M

$ 50 .0 M $ 50 .0 M

Average $ 40 .0 M $ 40 .0 M

$ 30 .0 M
$16.9M $ 30 .0 M
-17% +29% +199%
valuation $ 20 .0 M

$39.2M $50.5M
$ 20 .0 M

$ 10 .0 M $ 10 .0 M $60.7M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

1 80 % 1 80 %
170%
1 60 % 1 60 %

Median change 1 40 %
1 20 %
1 40 %
1 20 %

in valuation 1 00 % 1 00 %
8 0% 8 0%
+31% +55% +143%
from previous 6 0% 6 0%
4 0%
70% 110% 4 0%
150% 130%
round 2 0%
%
2 0%
0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

6
Q3'22 Tech Valuations Report | Seed/Angel US

Seed/angel deal trends

8.0% 5.8% 1 00 %
3.1% 4.8% All others
1 00 %
9 0%
8 0%
7 0%
9 0%
8 0%
7 0%
4.7%
Liquidation
6 0% 6 0%

Pari passu
5 0% 5 0%
4 0% 4 0%

seniority structure 3 0% 3 0%
2 0%
1 0%
92.0% 94.2% 2 0%
1 0%
96.9% 95.2% 95.3%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.0% 0.2% 0.0% 0.0% >2x, 0.0%

0.6% 0.6% 0.0% 0.5% >1x, 0.5%
1 00 % 1 00 %
9 0% 9 0%
8 0% 8 0%

Liquidation
7 0% 7 0%
6 0%

1x, 99.5%
6 0%
5 0% 5 0%

preference multiple 4 0%
3 0%
4 0%

99.4% 99.2%
3 0%
2 0%
1 0%
2 0%
1 0%
100.0% 99.5%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

2.9% 3.4% 2.2% 1.4% Capped or full

participation
1 00 % 1 00 %
9 0% 9 0%
8 0%

1.6%
8 0%
7 0% 7 0%
6 0% 6 0%

Liquidation 5 0% 5 0%
4 0% 4 0%
No participation
participation rights 3 0%

97.1% 96.6%
3 0%

97.8% 98.6%
2 0%
1 0%
2 0%
1 0% 98.4%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.2% 0.0% 0.0% 0.0% Full ratchet

1 00 % 1 00 %
9 0%
8 0%
9 0%
8 0%
0.0%
7 0% 7 0%

Antidilution
6 0%
5 0%
6 0%
5 0%
Weighted average
provisions
4 0%
3 0%
4 0%
3 0% 100.0%
2 0%
1 0%
99.8% 100.0% 2 0%
1 0%
100.0% 100.0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

6.6% 6.0% 8.3% 5.1% Cumulative

5.6%
1 00 % 1 00 %
9 0% 9 0%
8 0% 8 0%
7 0% 7 0%
6 0%
5 0%
6 0%
5 0%
Non-cumulative
Dividend structure 4 0%
3 0%
4 0%
3 0% 94.4%
2 0%
1 0%
93.4% 94.0% 2 0%
1 0%
91.7% 94.9%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

80
. %
7.0% 6.7% 80
. %
7.0% 6.9% 7.0%
70
. %
70
. %
60
. %
60
. %
50
. %
50
. %

Average dividend rate

40
. % 40
. %
30
. % 30
. %
20
. % 20
. %
10
. % 10
. %
00
. % 00
. %

2020 2021 2022 2022 2022

Q1 Q2 Q3

7
Series A

Global median valuations

Q3’22 vs. Q3’22 vs.

Round Size 2021 H1’22 Q3’22
H1’22 2021

<$10M $28.7M $33.1M $34.3M +4% +20%

$10-$15M $45.3M $48.2M $43.5M -10% -4%

$15-25M $74.2M $81.3M $90.0M +11% +21%

$25M+ $165.2M $192.2M $240.0M +25% +45%

8
Q3'22 Tech Valuations Report | Series A GLOBAL

Series A funding and valuations

4,963
50
, 00 3,593 25
, 00
2022 Projected
40
, 00 20
, 00
1,274 1,325 1,039
30
, 00 15
, 00 4,851 deals
Deal volume 20
, 00 10
, 00

10
, 00 5 00
-2% from 2021
0 0

2020 2021 2022 2022 2022 +35% from 2020

. Q1 Q2 Q3

Q3’22 Q3’22 Q3’22

$ 12 .0 M $ 12 .0 M $10.3M vs. vs. vs.
$ 10 .0 M $ 10 .0 M Q2’22 2021 2020
$ 8.0 M $ 8.0 M

Median $ 6.0 M $ 6.0 M

deal size $ 4.0 M

$7.0M $10.0M
$ 4.0 M

$11.0M
$ 2.0 M $ 2.0 M $11.0M
$ 0.0 M $ 0.0 M -7% +2% +46%
2020 2021 2022 2022 2022
Q1 Q2 Q3

$ 20 .0 M $ 20 .0 M
$18.1M
$ 18 .0 M $ 18 .0 M
$ 16 .0 M $ 16 .0 M
$ 14 .0 M $ 14 .0 M

Average
$ 12 .0 M $ 12 .0 M
$ 10 .0 M
$ 8.0 M
$ 10 .0 M
+9% +6% +39%
deal size
$ 8.0 M
$ 6.0 M $ 6.0 M
$ 4.0 M
$ 2.0 M
$13.0M $17.0M $ 4.0 M
$ 2.0 M
$16.7M $16.6M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 70 .0 M $ 70 .0 M
$64.9M
$ 60 .0 M $ 60 .0 M
$ 50 .0 M

Median
$ 50 .0 M

+1% +20% +73%

$ 40 .0 M $ 40 .0 M

valuation
$ 30 .0 M $ 30 .0 M

$37.5M $54.3M $70.7M $64.0M

$ 20 .0 M $ 20 .0 M

$ 10 .0 M $ 10 .0 M

$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 20 0 .0M
$ 18 0 .0M
$ 20 0 .0M
$ 18 0 .0M
$162.0M
$ 16 0 .0M $ 16 0 .0M
$ 14 0 .0M $ 14 0 .0M

Average
$ 12 0 .0M $ 12 0 .0M
$ 10 0 .0M

-16% +7% +39%

$ 10 0 .0M
$ 80 .0 M

valuation
$ 80 .0 M
$ 60 .0 M $ 60 .0 M
$ 40 .0 M
$ 20 .0 M
$116.2M $150.8M $ 40 .0 M
$ 20 .0 M
$162.6M $192.6M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

3 50 % 3 50 %

Median change
3 00 % 3 00 %

2 50 % 2 50 %

in valuation 2 00 % 2 00 %
120%
1 50 % 1 50 %
-61% -59% -8%
from previous 1 00 %

130% 290% 280%

1 00 %

310%
round
5 0% 5 0%

% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

9
Q3'22 Tech Valuations Report | Series A US

Series A deal trends

1 00 %
20.9% 13.4% 1 00 %
13.4% 11.6% All others
11.6%
9 0% 9 0%
8 0% 8 0%
7 0% 7 0%

Liquidation
6 0% 6 0%

Pari passu
5 0% 5 0%
4 0% 4 0%

seniority structure 3 0%

79.2% 86.6%
3 0%
2 0%
1 0%
2 0%
1 0%
86.6% 88.4% 88.4%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.4% 0.1% 0.0% 0.0% >2x, 0.0%

1.9% 1.1% 1.6% 0.8% >1x, 2.0%
1 00 % 1 00 %
9 0% 9 0%
8 0% 8 0%

Liquidation
7 0% 7 0%
6 0% 6 0%

preference multiple
5 0%
4 0%
3 0%
5 0%
4 0% 1x, 98.0%
97.7% 98.9%
3 0%
2 0%
1 0%
2 0%
1 0%
98.4% 99.2%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

7.1% 4.5% 4.3% 2.1% Capped or full

participation
1 00 % 1 00 %
9 0% 9 0%
8 0%

5.1%
8 0%
7 0% 7 0%
6 0% 6 0%

Liquidation 5 0% 5 0%
4 0% 4 0%
No participation
participation rights 3 0%

92.9% 95.5%
3 0%

95.7% 97.9%
2 0%
1 0%
0%
2 0%
1 0% 95.0%
0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.0% 0.2% 0.0% 0.0% Full ratchet

1 00 % 1 00 %
9 0%
8 0%
9 0%
8 0%
0.0%
7 0% 7 0%

Antidilution
6 0%
5 0%
6 0%
5 0%
Weighted average
provisions
4 0%
3 0%
4 0%
3 0% 100.0%
2 0%
1 0%
100.0% 99.8% 2 0%
1 0%
100.0% 100.0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

1 00 %
12.7% 9.7% 1 00 %
10.3% 7.5% Cumulative
9 0%
8 0%
9 0%
8 0%
14.0%
7 0% 7 0%
6 0%
5 0%
6 0%
5 0% Non-cumulative
Dividend structure 4 0%
3 0%
4 0%
3 0% 86.1%
2 0%
1 0%
87.3% 90.4% 2 0%
1 0%
89.7% 92.5%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

80
. %
7.1% 7.0% 80
. %
7.1% 6.8% 7.0%
70
. %
70
. %
60
. %
60
. %
50
. %
50
. %

Average dividend rate

40
. % 40
. %
30
. % 30
. %
20
. % 20
. %
10
. % 10
. %
00
. % 00
. %

2020 2021 2022 2022 2022

Q1 Q2 Q3

10
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11
Series B

Global median valuations

Q3’22 vs. Q3’22 vs.

Round Size 2021 H1’22 Q3’22
H1’22 2021

<$25M $75.9M $81.0M $114.0M +41% +50%

$25-$50M $182.8M $178.8M $144.9M -19% -21%

$50M+ $585.0M $500.0M $519.4M +4% -11%

12
Q3'22 Tech Valuations Report | Series B GLOBAL

Series B funding and valuations

2,667 16
, 00
30
, 00

25
, 00 1,791
14
, 00
2022 Projected
635
12
, 00

20
, 00 10
, 00 622 459 2,288 deals
8 00
15
, 00

Deal volume 10
, 00
6 00

4 00
5 00 2 00 -14% from 2021
0 0

2020 2021 2022 2022 2022 +28% from 2020

. Q1 Q2 Q3

Q3’22 Q3’22 Q3’22

$ 30 .0 M $ 30 .0 M vs. vs. vs.
$ 25 .0 M $ 25 .0 M $20.3M Q2’22 2021 2020
$ 20 .0 M $ 20 .0 M

Median $ 15 .0 M $ 15 .0 M

deal size $ 10 .0 M

$15.0M $25.0M
$ 10 .0 M

$26.0M
$ 5.0 M $ 5.0 M $26.0M
$ 0.0 M $ 0.0 M -22% -19% +35%
2020 2021 2022 2022 2022
Q1 Q2 Q3

$ 45 .0 M

$31.4M
$ 45 .0 M
$ 40 .0 M $ 40 .0 M
$ 35 .0 M $ 35 .0 M
$ 30 .0 M $ 30 .0 M

Average $ 25 .0 M
$ 20 .0 M
$ 25 .0 M
$ 20 .0 M -17% -23% +26%
deal size $ 15 .0 M $ 15 .0 M
$ 10 .0 M
$ 5.0 M
$25.0M $40.9M $ 10 .0 M
$ 5.0 M
$38.0M $38.0M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 25 0 .0M

$172.6M
$ 25 0 .0M

$ 20 0 .0M $ 20 0 .0M

Median $ 15 0 .0M $ 15 0 .0M

-16% -11% +58%

valuation
$ 10 0 .0M $ 10 0 .0M

$ 50 .0 M
$109.3M $194.8M $ 50 .0 M
$241.2M $204.6M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 50 0 .0M

$344.3M
$ 50 0 .0M
$ 45 0 .0M $ 45 0 .0M
$ 40 0 .0M $ 40 0 .0M
$ 35 0 .0M $ 35 0 .0M

Average
$ 30 0 .0M $ 30 0 .0M
$ 25 0 .0M

0% -25% +16%
$ 25 0 .0M
$ 20 0 .0M

valuation
$ 20 0 .0M
$ 15 0 .0M $ 15 0 .0M
$ 10 0 .0M
$ 50 .0 M
$296.6M $461.7M $ 10 0 .0M
$ 50 .0 M
$435.1M $345.9M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

3 50 % 3 50 %

Median change
3 00 %

190%
3 00 %

2 50 % 2 50 %

in valuation 2 00 % 2 00 %

1 50 % 1 50 %
-42% -30% +36%
from previous 1 00 %

140% 270% 280%

1 00 %

330%
round
5 0% 5 0%

% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

13
Q3'22 Tech Valuations Report | Series B US

Series B deal trends

27.7% 26.0% 20.7% 23.7%
1 00 %
9 0%
1 00 %
9 0%
All others
8 0%
7 0%
8 0%
7 0% 22.4%
Liquidation
6 0% 6 0%
5 0% 5 0%

seniority structure
4 0%
3 0%
4 0%
3 0% Pari passu
2 0%
72.3% 74.0% 79.3% 76.3% 77.7%
2 0%
1 0% 1 0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.2% 0.3% 0.0% 0.0% >2x, 0.0%

1 00 %
3.0% 1.2% 1 00 %
0.7% 3.0% >1x, 4.7%
9 0% 9 0%
8 0% 8 0%

Liquidation
7 0% 7 0%
6 0% 6 0%

preference multiple
5 0%
4 0%
3 0%
5 0%
4 0% 1x, 95.4%
96.8% 98.5%
3 0%
2 0%
1 0%
2 0%
1 0%
99.3% 97.0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

6.6% 5.6% 3.5% 1.5% Capped or full

participation
1 00 % 1 00 %
9 0% 9 0%
8 0%

3.5%
8 0%
7 0% 7 0%
6 0% 6 0%

Liquidation 5 0% 5 0%
4 0% 4 0%
No participation
participation rights 3 0%

93.4% 94.4%
3 0%

96.6% 98.5%
2 0%
1 0%
2 0%
1 0% 96.5%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.5% 0.0% 0.0% 0.0% Full ratchet

1 00 % 1 00 %
9 0%
8 0%
9 0%
8 0%
0.0%
7 0% 7 0%

Antidilution
6 0%
5 0%
6 0%
5 0%
Weighted average
provisions
4 0%
3 0%
4 0%
3 0% 100.0%
2 0%
1 0%
99.5% 100.0% 2 0%
1 0%
100.0% 100.0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

1 00 %
12.7% 9.7% 1 00 %
8.2% 15.7% Cumulative
9 0%
8 0%
9 0%
8 0%
13.7%
7 0% 7 0%
6 0%
5 0%
6 0%
5 0% Non-cumulative
Dividend structure 4 0%
3 0%
4 0%
3 0% 86.3%
2 0%
1 0%
87.3% 90.4% 2 0%
1 0%
91.8% 84.3%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

80
. %
7.1% 7.0% 7.0% 7.2% 6.8%
80
. %
70
. %
70
. %
60
. %
60
. %
50
. %
50
. %

Average dividend rate

40
. % 40
. %
30
. % 30
. %
20
. % 20
. %
10
. % 10
. %
00
. % 00
. %

2020 2021 2022 2022 2022

Q1 Q2 Q3

14
Series C

Global median valuations

Q3’22 vs. Q3’22 vs.

Round Size 2021 H1’22 Q3’22
H1’22 2021

<$55M $222.9M $213.0M $270.2M +27% +21%

$55M+ $1,000.0M $1,000.0M $828.0M -17% -17%

15
Q3'22 Tech Valuations Report | Series C GLOBAL

Series C funding and valuations

1,330 8 00
16
, 00 7 00
2022 Projected
14
, 00
875 6 00
12
, 00
10
, 00
5 00
293 301 224 1,091 deals
4 00
8 00

Deal volume 6 00
4 00
3 00

2 00

2 00 1 00 -18% from 2021

0 0

2020 2021 2022 2022 2022 +25% from 2020

. Q1 Q2 Q3

Q3’22 Q3’22 Q3’22

$ 70 .0 M $ 70 .0 M vs. vs. vs.
$ 60 .0 M $ 60 .0 M Q2’22 2021 2020
$ 50 .0 M $ 50 .0 M

Median $ 40 .0 M

$ 30 .0 M
$ 40 .0 M $26.0M
$ 30 .0 M

deal size $ 20 .0 M

$30.2M $50.0M
$ 20 .0 M

$60.0M
$ 10 .0 M $ 10 .0 M $50.0M
$ 0.0 M $ 0.0 M -48% -48% -14%
2020 2021 2022 2022 2022
Q1 Q2 Q3

$ 90 .0 M $ 90 .0 M
$ 80 .0 M $ 80 .0 M

$45.0M
$ 70 .0 M $ 70 .0 M
$ 60 .0 M $ 60 .0 M

Average $ 50 .0 M
$ 40 .0 M
$ 50 .0 M
$ 40 .0 M -35% -42% -17%
deal size $ 30 .0 M $ 30 .0 M
$ 20 .0 M
$ 10 .0 M
$54.0M $77.4M $ 20 .0 M
$ 10 .0 M
$77.6M $69.5M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 70 0 .0M $ 70 0 .0M

$ 60 0 .0M

$ 50 0 .0M
$ 60 0 .0M
$457.4M
$ 50 0 .0M

Median $ 40 0 .0M $ 40 0 .0M

$ 30 0 .0M -25% -21% +62%

valuation
$ 30 0 .0M

$ 20 0 .0M

$283.0M $578.4M $632.6M

$ 20 0 .0M

$ 10 0 .0M $ 10 0 .0M $607.1M

$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 1, 6 00 .0M $ 1, 6 00 .0M
$ 1, 4 00 .0M $ 1, 4 00 .0M
$ 1, 2 00 .0M $ 1, 2 00 .0M

Average
$ 1, 0 00 .0M

$ 80 0 .0M
$ 1, 0 00 .0M $677.9M
-24% -27% +13%
$ 80 0 .0M

valuation
$ 60 0 .0M $ 60 0 .0M

$600.4M $932.7M $1,584.1M $895.5M

$ 40 0 .0M $ 40 0 .0M
$ 20 0 .0M $ 20 0 .0M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

2 50 % 2 50 %

Median change 2 00 % 2 00 %
130%
in valuation
1 50 % 1 50 %

1 00 % -19% -46% +8%

from previous
1 00 %

5 0%
120% 240% 5 0%
190% 160%
round % 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

16
Q3'22 Tech Valuations Report | Series C US

Series C deal trends

36.2% 30.7% 26.6% 35.1%
1 00 %
9 0%
1 00 %
9 0% All others
43.3%
8 0% 8 0%
7 0% 7 0%

Liquidation
6 0% 6 0%
5 0% 5 0%

seniority structure
4 0%
3 0%
4 0%
3 0%
Pari passu
2 0%
1 0%
63.8% 69.4% 2 0%
1 0%
73.4% 64.9% 56.7%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.4% 0.3% 1.3% 0.0% >2x, 0.0%

1 00 %
2.6% 2.1% 1 00 %
3.8% 5.3% >1x, 0.0%
9 0% 9 0%
8 0% 8 0%

Liquidation
7 0% 7 0%
6 0%

1x, 100.0%
6 0%
5 0% 5 0%

preference multiple 4 0%
3 0%
4 0%

96.9% 97.6%
3 0%
2 0%
1 0%
2 0%
1 0%
94.9% 94.7%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

5.2% 5.4% 5.1% 7.0% Capped or full

participation
1 00 % 1 00 %
9 0% 9 0%
8 0%

6.7%
8 0%
7 0% 7 0%
6 0% 6 0%

Liquidation 5 0% 5 0%

participation rights
4 0%
3 0%
4 0%
3 0% No participation
2 0%
1 0%
94.8% 94.6% 2 0%
1 0%
94.9% 93.0% 93.3%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.4% 0.0% 0.0% 0.0% Full ratchet

1 00 % 1 00 %
9 0%
8 0%
9 0%
8 0%
0.0%
7 0% 7 0%

Antidilution
6 0%
5 0%
6 0%
5 0%
Weighted average
provisions
4 0%
3 0%
4 0%
3 0% 100.0%
2 0%
1 0%
99.6% 100.0% 2 0%
1 0%
100.0% 100.0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

1 00 %
14.5% 8.6% 1 00 %
7.7% 15.0% Cumulative
9 0%
8 0%
9 0%
8 0% 17.7%
7 0% 7 0%

Non-cumulative
6 0% 6 0%
5 0% 5 0%

Dividend structure 4 0% 4 0%
3 0%

85.5% 91.4%
3 0%
82.4%
2 0%
1 0%
2 0%
1 0%
92.3% 85.0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

80
. %
7.3% 7.0% 7.3% 7.0% 7.2%
80
. %
70
. %
70
. %
60
. %
60
. %
50
. %
50
. %

Average dividend rate

40
. % 40
. %
30
. % 30
. %
20
. % 20
. %
10
. % 10
. %
00
. % 00
. %

2020 2021 2022 2022 2022

Q1 Q2 Q3

17
Series D+

Global median valuations

Q3’22 vs. Q3’22 vs.

Round Size 2021 H1’22 Q3’22
H1’22 2021

<$100M $666.1M $640.0M $474.7M -26% -29%

$100M+ $2,100.0M $2,000.0M $1,732.6M -13% -17%

18
Q3'22 Tech Valuations Report | Series D+ GLOBAL

Series D+ funding and valuations

1,104 6 00

2022 Projected
14
, 00

699
12
, 00 5 00

10
, 00 4 00
226 197 739 deals
8 00
3 00
131
Deal volume
6 00
2 00
4 00

2 00 1 00
-33% from 2021
0 0

2020 2021 2022 2022 2022 +6% from 2020

. Q1 Q2 Q3

Q3’22 Q3’22 Q3’22

$ 12 0 .0M $ 12 0 .0M
vs. vs. vs.
$ 10 0 .0M $ 10 0 .0M
Q2’22 2021 2020

Median
$ 80 .0 M

$ 60 .0 M
$ 80 .0 M

$ 60 .0 M
$50.0M
deal size $ 40 .0 M

$60.2M $110.0M
$ 40 .0 M

$114.4M
$ 20 .0 M $ 20 .0 M $100.0M
$ 0.0 M $ 0.0 M -50% -55% -17%
2020 2021 2022 2022 2022
Q1 Q2 Q3

$ 18 0 .0M $ 18 0 .0M
$ 16 0 .0M $ 16 0 .0M

$90.8M
$ 14 0 .0M $ 14 0 .0M
$ 12 0 .0M $ 12 0 .0M

Average $ 10 0 .0M
$ 80 .0 M
$ 10 0 .0M
$ 80 .0 M -26% -45% -21%
deal size $ 60 .0 M $ 60 .0 M
$ 40 .0 M
$ 20 .0 M
$114.9M $166.2M $ 40 .0 M
$ 20 .0 M
$160.1M $122.2M
$ 0.0 M $ 0.0 M

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 1.8 B $ 1.8 B

$1.1B
$ 1.6 B $ 1.6 B
$ 1.4 B $ 1.4 B
$ 1.2 B

Median
$ 1.2 B
$ 1.0 B

-31% +10%
$ 1.0 B
$ 0.8 B $ 0.8 B -27%
valuation $ 0.6 B $ 0.6 B
$ 0.4 B
$ 0.2 B
$1.0B $1.6B $ 0.4 B
$ 0.2 B
$1.6B $1.5B
$ 0.0 B $ 0.0 B

2020 2021 2022 2022 2022

Q1 Q2 Q3

$ 3.5 B $ 3.5 B
$ 3.0 B

$ 2.5 B
$ 3.0 B

$ 2.5 B
$2.1B
Average $ 2.0 B $ 2.0 B

$ 1.5 B $ 1.5 B
-14% -34% -10%
valuation $ 1.0 B

$2.4B $3.2B $3.0B

$ 1.0 B

$ 0.5 B $ 0.5 B $2.5B

$ 0.0 B $ 0.0 B

2020 2021 2022 2022 2022

Q1 Q2 Q3

1 60 % 1 60 %
1 40 %

Median change 90%

1 40 %
1 20 % 1 20 %

in valuation
1 00 % 1 00 %

-36% +29%
8 0%

-10%
8 0%

from previous
6 0% 6 0%

70% 140% 150% 100%

4 0% 4 0%

round 2 0%

%
2 0%

0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

19
Q3'22 Tech Valuations Report | Series D+ US

Series D+ deal trends

35.8% 34.5% 42.2% 45.2%
1 00 %
9 0%
1 00 %
9 0%
All others
39.1%
8 0% 8 0%
7 0% 7 0%

Liquidation
6 0% 6 0%
5 0% 5 0%
4 0% 4 0%
Pari passu
seniority structure 3 0%

64.2% 65.5%
3 0%
2 0%
1 0%
2 0%
1 0%
57.8% 54.8% 60.9%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.9% 0.3% 0.0% 2.4% >2x, 0.0%

1 00 %
2.7% 2.9% 1 00 %
4.7% 2.4% >1x, 4.4%
9 0% 9 0%
8 0% 8 0%

Liquidation
7 0% 7 0%
6 0% 6 0%

preference multiple
5 0%
4 0%
3 0%
5 0%
4 0% 1x, 95.7%
96.4% 96.8%
3 0%
2 0%
1 0%
2 0%
1 0%
95.3% 95.2%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

4.1% 4.8% 3.1% 7.1% Capped or full

participation
1 00 % 1 00 %
9 0% 9 0%
8 0%

13.0%
8 0%
7 0% 7 0%
6 0% 6 0%

Liquidation 5 0% 5 0%

No participation
4 0% 4 0%

participation rights 3 0%

95.9% 95.3%
3 0%

96.9%
2 0%
1 0%
2 0%
1 0% 92.9% 87.0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

0.0% 0.0% 0.0% 0.0% Full ratchet

1 00 % 1 00 %
9 0%
8 0%
9 0%
8 0%
0.0%
7 0% 7 0%

Antidilution
6 0%
5 0%
6 0%
5 0%
Weighted average
provisions
4 0%
3 0%
4 0%
3 0% 100.0%
2 0%
1 0%
100.0% 100.0% 2 0%
1 0%
100.0% 100.0%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

8.2% 9.4% 14.0% 17.2% Cumulative

1 00 %
9 0%
8 0%
1 00 %
9 0% 0.0%
8 0%

Non-cumulative
7 0% 7 0%
6 0% 6 0%
5 0% 5 0%

Dividend structure 4 0%
3 0%
4 0%
3 0%
100.0%
2 0%
1 0%
91.8% 90.7% 2 0%
1 0%
86.0% 82.8%
0% 0%

2020 2021 2022 2022 2022

Q1 Q2 Q3

80
. %
7.4% 7.3% 7.3% 7.0% 7.2%
80
. %
70
. %
70
. %
60
. %
60
. %
50
. %
50
. %

Average dividend rate

40
. % 40
. %
30
. % 30
. %
20
. % 20
. %
10
. % 10
. %
00
. % 00
. %

2020 2021 2022 2022 2022

Q1 Q2 Q3

20
Q3'22 Tech Valuations Report

If you have questions about the definitions

or methodological principles used, or if you feel
that your firm has been underrepresented,
please reach out to [email protected].

What is included: What is excluded:

Equity financings into private technology companies only. No contingent funding. If a company receives a
Technology companies are generally defined as commitment for $20M subject to hitting certain
businesses that primarily generate revenue from milestones but first gets $8M, only the $8M is included
proprietary and/or differentiated software, hardware, or in our data.
technology-driven platforms. No business development/R&D arrangements, whether
Only includes the investment made in the quarter transferable into equity now, later, or never. If a
for tranched investments. If a company does a second company signs a $300M R&D partnership with a larger
closing of its Series B round for $5M and previously had corporation, this is not equity financing nor is it from
closed $2M in a prior quarter, only the $5M is reflected. venture capital firms. As a result, it is not included.
Round numbers reflect what has closed, not what No buyouts, consolidations, or recapitalizations. All
is intended. If a company indicates the closing of $5M three of these transaction types are commonly
out of a desired raise of $15M, our numbers reflect only employed by private equity firms and are tracked by CB
the amount which has closed. Insights. However, they are excluded for the purposes of
this report.
Only verifiable fundings are included. Data and
information are verified via (1) various federal and state No private placements. These investments, also known
regulatory filings; (2) direct confirmation with firm or as PIPEs (Private Investment in Public Equities), are not
investor; (3) press release; or (4) credible media sources. included even if made by a venture capital firm.
Valuation data includes estimates to calibrate median No debt/loans of any kind (except convertible notes).
and average valuations based on current and previous Venture debt or any kind of debt/loan issued to
quarter disclosed valuations gathered from emerging, startup companies, even if included as an
the aforementioned four sources. Valuation data reflects additional part of an equity financing, is not included. If
post-money valuations. a company receives $3M with $2M from venture
investors and $1M in debt, only the $2M is included in
Deal terms are extracted from state regulatory filings in
these statistics.
the US (equity financing only).
No non-equity government funding. Grants or loans by
Headquarters are determined by publicly available
the federal government, state agencies, or public-private
sources including company-owned websites and profiles,
partnerships to emerging, startup companies are not
legal filings, and press releases.
included.
All figures in the report are in USD.
No funding rounds raised by public companies of any
kind on any exchange (including Pink Sheets), even if
they received investment from a venture firm.

21