The Inflationary Forces in Startupland

Post-money valuations for early-stage cloud and infrastructure companies have experienced dramatic inflation, with Series A valuations spiking 60% in 2021 compared to historical 11% annual growth, driven by shifts in both investor demand (faster processes, index investing, hedge fund entry) and founder supply-side sophistication (better auctions, strategic timing, improved GTM). The market dynamics have fundamentally changed, making large rounds and unicorn valuations the new norm rather than exceptional outcomes.