Late-Stage Startup Valuations Take a Hit During Market Correction

The ongoing market correction has led to a significant decrease in startup valuations, particularly in later stages. Companies such as Klarna and Getir have seen their valuations reduced in their latest funding rounds. With few late-stage companies raising new primary rounds since the booming 2021 market, secondary data is becoming a crucial source for investors to determine the true value of these companies. However, the secondary market suggests that these companies are not worth their 2021 price tags, with Neobank Chime and Kraken experiencing significant valuation drops. Despite the potential for the IPO window to open back up in 2024, a recent survey of venture secondaries investors suggests that prices may still have room to drop.