Median Pre Money Valuation at $15.9 Million.
It should come as no surprise that the San Francisco Bay area – which includes Silicon Valley – dominates venture capital. New York City sits squarely in second place. The rest of the top five consists of Los Angeles, Boston and Seattle – in that order (Austin is at #6!).
In a report from Pitchbook, the VC tracking company reports that in Q3:
- San Francisco – Silicon Valley raised $3.1 Billion capturing 32% of venture rounds and 43% of the estimated $7.32 Billion total
- New York City hit 11.1% of the deals.
- Los Angeles 5.5%
- Boston 4.8%
- Seattle 3.6%
The median pre-money valuation for San Francisco startups stood at $15.9 Million which is actually a decline from the previous quarter where it stood at $20.2 Million. The Top Bay area investors reads like a list of regular suspects and includes Google Ventures, Andreesen Horowitz, Kleiner Perkins Caufield & Byers, 500 Startups and First Round Capital.
Overall deal flow is down from Q2 most dramatically in Early Stage investments. As Pitchbook states, “Series A crunch” continues to be a topic of concern” and “this indicates that VC investors are placing fewer, larger bets on early stage companies but are not having to pay higher prices”.