Whereas this yr’s inventory market decline was swift, it was additionally widespread, with only a few firms escaping the downturn. However present market situations haven’t precipitated the identical uniform trajectory for startups.
When public-market inventory costs began to fall, everybody reminded themselves that it could take just a few months to see the actual impression on the non-public market — traditionally a six-month lag. However information from Caplight, a fintech that appears to make secondary buying and selling extra clear, discovered that late-stage startups weren’t actually following a singular pattern.
The pattern set of startups that Caplight examined contains the ten highest-valued venture-backed firms, together with recognizable names like Canva, ByteDance and Stripe. We’re specializing in the modifications to the share costs at which these firms have been traded on the secondary market. These costs are, in flip, derived from an organization’s valuation set throughout secondary trades.
The info discovered that a few of these late-stage startups’ valuations fell consistent with the general public market, whereas some began to drop off in 2021, earlier than the general public markets tanked, and others are nonetheless seeing their valuation creep up. Whereas we don’t know exactly why, when and the way laborious every firm’s valuation is getting hit — if in any respect — there are just a few observations value noting.