Aumni Venture Beacon: 1H 2024
The Aumni Venture Beacon is our biannual report on the state of the venture capital market. We leverage data derived from legal documents underpinning equity financings to provide in-depth insights on valuations, the pace of financing, deal structures, follow-on investments, secondaries, and more.
The first half of the year saw signs of improvement in the market but it continued to be a challenging period. Our latest report, the Aumni Venture Beacon, examines the mixed dynamics at play during this unique juncture for venture.
Highlights from Aumni Venture Beacon:
- Pre-money valuations improved in the first half of the year, as did late-stage lead investor check sizes. Improvements in the data appear to be driven by the top end of the market.
- The median time between financing rounds meaningfully declined for the first time since 2022, from 25 months in Q1 to 22 months in Q2, but still remains historically elevated.
- Down rounds considerably increased for late-stage companies. Median markdowns remained at similar levels in the first half the year for all stages except Series B, which increased to approximately $79 million from $34 million in 2023.
- Follow-on investments are increasing in prevalence, and appear to be at the highest levels in the previous 10 years.
- Secondary transactions executed at a premium to the price per share of the most recent priced equity round increased in prevalence to 36%, from 32% the year prior. The average value of a secondary tranche is steadily increasing as well, while the relative price per share of common vs. preferred equity classes is decreasing.
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