Forge Global: Top Startup Valuations Fell 19.95% in February and March

FT summarized the latest data from 2 platforms trading private shares.  These platforms are used to trade shares in the largest, late-stage startups:

  • Forge Global, which just SPAC’d / went public itself, found the clearing price for trades for top startups fell 10% in February and another 10% or so in March, after just starting to go down in January.
  • Zanbato saw Stripe fall 4% in value, perhaps not material, but still interesting, and Hopin fall 40%.

But this is … to be expected.  Nasdaq is down about 15% in the same time frame, EMCLOUD is down 13%, and later-stage investing has been hit the most by the downturn.

These are the changes everyone that has IPO’d has seen this year … but that most startups don’t directly feel, see or experience.

This data is biased toward the biggest names, and on exchanges that are not tiny but fairly niche.  But it does tie to everything I’ve seen in the markets.  And a reminder that so many of the big deals you are still seeing on TechCrunch, etc. were likely in process in January — before this 19.9% downturn.  The press looks backwards in time here.  Deals announced today were often signed or started 60-90 days ago, or even longer.

And it’s a reminder your startup probably fell in valuation 19.9% or so too in the past 2 months.  If you’re growing like a weed and/or don’t need to fundraise soon, though, it probably doesn’t matter too much.

Published on April 18, 2022

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