Dear Members,

As the summer comes to an end - 2021 feels further and further away from us.

Between October 2021 and June 2022, most of the listed tech companies lost between 30% to 90% of their value. Netflix lost -74%, Paypal -72%, AirBnB -52%, Upstart -90%, Zoom (US) -59% etc.

These drops have a huge effect on private valuation and how VC and investor apprehend the market compared to 2021.

1) Are we getting back to reality?

What if the dropdown of the market was actually a market correction?

The huge amount of liquidity that the centrals banks put on the market led venture valuations to rise and shine (among other thing).

2021 was a crazy year for the (primary) venture capital market, we saw incredible things like SaaS companies valued at 100x the ARR, or a fintech unicorn that only made €2m revenues per year (you know who I am referring to).

It seemed so easy to raise funds, anyone with a strong team and a good idea was able to raise from a couple of millions to hundreds.

Any investors back then was able to tell you that those valuations were crazy, except the ones that invested 4 years back ;)

2- 2021 Impact on the Venture Secondary Market