Mike Cardamone
Contributor
There is no question that 2023 was a tough year for the venture and tech ecosystem. Carta revealed a dramatic decline in funding rounds and total investment, showing the total number of rounds in Q1 2023 dropping 64% and the total dollars inve…
In a recent report, Forum Ventures surveyed 70 funds and analyzed data from 167 closed pre-seed and seed rounds between January and October 2023 to provide a comprehensive overview of the current state of the early-stage B2B SaaS investment landscape.
A few key findings from that report:
- 75% of respondents noted a decrease in valuations since 2022 and the data across these rounds showed a 10% decrease from the same survey conducted last year.
- Mean valuations at pre-seed were $9 million post and that held true for pre-revenue through $250,000 in ARR (annual recurring revenue) across the rounds data was collected from.
- Companies with $250,000 in ARR or higher raised at a mean valuation cap of $15 million.
Seed rounds
As a founder, be smart in managing your cash flow, convince great people to join your company, and focus on building a product that your customers crave.
Seed valuations have remained steady through 2022 and 2023, yet achieving the necessary traction for these rounds has become more challenging, which can create misaligned expectations for founders. In 2020–2021, it was relatively common for $3 million to $5 million seed rounds to get done with very little, if any,