The State of U.S. Early-Stage Venture & Startups: 2021

AngelList

Research

26 Pages

AngelList explores the resilience and emerging cracks in early-stage venture markets, showing how startup funding, valuations, and deal activity behaved amid broader market turbulence. Despite 83% of startups seeing valuation increases and record 11.6% activity, signs of slowing momentum and shifting capital dynamics raise questions about sustainability.

Key Takeaways

Markup Rates Still Elevated: 83% of startups saw valuation increases in 1Q22, down from 90% peak in 2Q21, suggesting resilience but a gradual cooling trend in pricing momentum.
Record Deal Activity: 1 11.6% of 6,848 startups raised or exited in 1Q22, marking the most active first quarter on record despite public market volatility.
Valuations Surge Higher: Seed valuations rose 25% to $34.3M and pre-seed jumped 21% to $10.8M, reflecting continued investor competition and abundant early-stage capital.
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