As a guy that listens to market “signal,” I find it fascinating how disjointed market consensus is on venture valuations. Everyone is in the opinion business, and it seems it is very much bifurcated. Some great reads on this have been from Mark Turck on the “The Great VC Pullback” and Tomasz Tunguz “The Three Eras of Startup Valuation.”
My consensus is that the blood hasn’t crept down into the early stage, and it might not for some quiet time. Tiger Global went straight down into the Seed stage from late and will start indexing. This relocation to the capital will perpetuate the inflation in valuations as there is more supply than demand. As I continue to watch the markets, I will focus on finding good companies with fair value.
