Seed Deals Remain Strong Despite Contraction in Venture Capital Market

Seed deals in the venture capital market are holding up well despite a general contraction in the industry. The main reason for this is rapid growth. Seed deals have been priced at or near all-time highs, with median valuations in the US reaching $12 million this year. The most active startup investors have seen an increase in activity in Q3, while overall venture funding remained flat compared to the previous quarter. Global venture funding settled around $22 billion in August 2023, up around 19% month over month but down 16% from the $26.2 billion invested in July 2022. Late-stage dealmaking is experiencing sharp valuation declines across nearly every startup stage globally.