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Bearish VCs, bullish founders and changing investing trends

Bearish VCs, bullish founders and changing investing trends
During the early days of the COVID-19 pandemic, https://techcrunch.com/2020/03/07/vcs-warn-coronavirus-will-impact-fundraising-for-the-next-2-quarters/]concern was high, https://techcrunch.com/2020/03/09/saas-stocks-drop-over-8-reaching-bear-market-territory/]public markets were suffering and it wasn’t hard to find wags on Twitter declaring that the world had changed and startup valuations were now off 40% – if you could put a round together.
But last night, https://techcrunch.com/2020/06/15/a-new-silicon-valley-venture-report-shocks-because-of-how-little-the-pandemic-has-impacted-dealmaking/]we reported that more startups than expected were raising new capital at a higher valuations than prior rounds, an event often called an “up round.”
The Exchange is a daily look at startups and the private markets for Extra Crunch subscribers; use code EXCHANGE to get full access and https://techcrunch.com/subscribe/]take 25% off your subscription.
The data looked remarkably steady. As Connie Loizos wrote, “so-called ‘up rounds’ only declined modestly, from 72% [of Silicon Valley financings] in March to 70% in April.” Hardly doom and gloom.
The notion that the funding environment is not as bad as it was anticipated has been borne out in other data, including what https://techcrunch.com/2020/06/10/the-pace-of-startup-layoffs-may-be-slowing-down/]appears to be a falling pace of startup layoffs. Perhaps the sky is not falling for private, growth-oriented companies that we tend to call startups?
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