Name: ‘Can’t Get More Crazy’: Series A Valuations Extend Record Rise
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‘Can’t Get More Crazy’: Series A Valuations Extend Record Rise

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Financial software developer Orum, which disclosed a seed round over the summer, wasn’t seeking more capital when Bain Capital Ventures offered to lead its Series A investment last year. But the one-year-old startup took the money anyway and got a post-investment valuation of $100 million, according to a person with direct knowledge of the deal. Such unsolicited deals, carrying price tags once equated with more mature companies, have been driving early-stage valuations to record highs.The median pre-investment valuation for a Series A round of funding has increased sixfold to $37 million since 2010, according to data on U.S. companies provided to The Information by research firm PitchBook. With more capital flowing into public and private tech stocks, investors are paying higher prices to win VC deals. These steep valuations allow founders to preserve their equity stakes but may hurt companies’ ability to raise capital in the future if they don’t grow fast enough.Read this article for freeContinue with AppleorGet access to exclusive coverageRead deeply reported stories from the largest newsroom in tech.Latest Articles&nbsp;The 155th day of the crypto winter dawned sunshiny and busy for Evan Keast last week. His hometown of Vancouver, British Columbia, was enveloped in a burst of late-summer warmth as he plotted the next moves for Doodles, his celebrity-beloved non-fungible token startup. “We’ve had one of our biweekly all-hands meetings, I’ve had my coffee, and I’ve packed for...Latest Briefs&nbsp;China Is Twitter’s Fastest Growing Overseas Ad Market Despite Being BannedPeloton Founder John Foley ResignsOracle Slightly Misses Cloud Revenue Growth It ProjectedStay in the knowReceive a summary of the day's top tech news—distilled into one email.Access on the goView stories on our mobile app and tune into our weekly podcast.Join live video Q&amp;A’sDeep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.Enjoy a clutter-free experienceRead without any banner ads.Recent Popular Stories

Financial software developer Orum, which disclosed a seed round over the summer, wasn’t seeking more capital when Bain Capital Ventures offered to lead its Series A investment last year. But the one-year-old startup took the money anyway and got a post-investment valuation of $100 million, according to a person with direct knowledge of the deal. Such unsolicited deals, carrying price tags once equated with more mature companies, have been driving early-stage valuations to record highs.The median pre-investment valuation for a Series A round of funding has increased sixfold to $37 million...

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‘Can’t Get More Crazy’: Series A Valuations Extend Record Rise

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