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As a result of the Covid-19 crisis start-up valuations are decreasing. A survey by Venturelab shows the expectations of investors. A report by Pitchbook shed light on the long-term trends. And a Forbes article points out that the situation is not for all start-ups equally negative. Our start-up press review.
Venturelab: The majority of investors expect a massive decrease in startup valuations
Historically, we can expect a drop in deals and valuations after an economic crisis. To better evaluate the situation in Switzerland, we wanted to know what local investors think of the current and future developments.
Pitchbook: European VC Valuations Report
This edition of the European VC Valuations Report highlights trends in valuations across deal stages, sectors and regions for the first quarter of 2020. Pre-money valuations across the financing stages stayed robust in Q1 despite the emergence of COVID-19. However, because most VC deals were conducted prior to any market disruption, we expect valuations to fall in the coming quarters.
Forbes: Startups Put Fundraising On Hold As Venture Capital Gets ‘Aggressive To Invest’
With revenue hit by coronavirus, startup valuations are down, some as much as 40% according to data from Dealroom.co, which tracks European startups. This means venture capital funds can buy up equity on the cheap.
N.B. On 10 June Swiss Startup Group will held a webinar on the topic. Panelists include Dr. Christian Wenger, one of the most active private venture investors in Switzerland, venture capital pioneer Gina Domanig (Founder, Emerald Technology Ventures), and Richard Harris, Partner at US VC G-Squared (Airbnb, Lyft).
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