Startup Down Rounds Hit Alarming Decade High! Investors Alarmed!

Startup down rounds are at a ten-year high, according to PitchBook data

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๐ŸŒช๏ธ Market Mayhem: Venture Valuations CRASH to Earth! ๐Ÿšจ

Get ready to hold onto your wallets, folks! The once-soaring venture capital market is plummeting faster than a lead balloon! PitchBook has just dropped some jaw-dropping numbers, revealing that a staggering 15.9% of all venture-backed deals in 2025 are down roundsโ€”the highest rate in TEN years. If thatโ€™s not a wake-up call, I donโ€™t know what is!

๐Ÿ“‰ IPOs Flop Hard: Investors Left Reeling! ๐Ÿค‘

The latest IPOs are headlining the fall from grace, hitting the public markets like a meteor! Just look at these figures:

  • MNTN crashes from a whopping $2 billion to just $1.1 billion at its IPO!
  • Circle tumbles from $7.7 billion to a meager $5.8 billion!
  • Hingeโ€”from a staggering $23 billion to a mere $6.2 billion!
  • And Chime? It goes public at $9.1 billion, down from a sky-high $25 billion.

These companies aren’t just taking hits; theyโ€™re getting knocked out cold!

๐Ÿง  Tech Still Shines: AI Holds Its Ground! โšก

But wait! The AI realm continues to glimmer amidst the chaos. Itโ€™s not completely unscathed though, with 29.3% of those down rounds belonging to AI and machine learning companies. Big players like OpenAI are still strutting with a jaw-dropping $500 billion valuation, while Anthropic flexes a glorious $170 billion. For the rest of the AI crew, theyโ€™re still holding onto some shiny numbers, with median Series B valuations at 2.1xโ€”much higher than the measly 1.4x of the rest.

๐Ÿ’ฐ Is the IPO Market Making a Comeback? Prepare for the Rollercoaster! ๐ŸŽข

Some say the IPO market is back in actionโ€”others whisper itโ€™s just for the brave. In Q2, U.S. venture-backed startups pulled a mind-blowing $67 billion in exit valueโ€”the highest haul since late 2021. But hereโ€™s the kicker: a whopping 99% of U.S. unicorns are still waiting for their chance to shine. Brace yourself, this isnโ€™t over yet!

๐Ÿšซ JUST 1% of Unicorns Go Public This Year! ๐Ÿšจ

Whatโ€™s more? The unicorns making their public debut in 2025 represent a tiny 1% of all U.S. unicorns! This is the harsh reality check every investor dreads.

Hold tight, folks; the venture capital scene is more volatile than ever! Stay tuned for the next explosive developments!

photo credit: fortune.com

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Source: USD @ Fri, 15 Aug.