tomtunguz.com · 2020-03-12
· 2275d
What Could the Venture Market Look Like in the Coronavirus Era
The article analyzes how the coronavirus crisis might impact venture fundraising by drawing parallels to the 2008 financial crisis, examining historical data on VC investment volumes, round sizes, and deal velocity across funding stages. Key findings show that while total VC dollars invested fell sharply, deal count remained relatively stable, with valuations and round sizes being the primary factors affected, particularly in later-stage funding rounds.
Metrics in this report
Seed Round Size
300thousand dollars
median
2008 era seed rounds (stable through crisis)
Series A Round Size
4million dollars
median
Pre-2008 crisis
Series A Round Size
2.6million dollars
median
Post-2008 crisis trough
Series B Round Size
10million dollars
median
Pre-2008 crisis
Series B Round Size
6million dollars
median
Post-2008 crisis trough
Series C Round Size
14million dollars
median
Pre-2008 crisis
Series C Round Size
8.5million dollars
median
Post-2008 crisis trough
VC Investment Volume (Seed-Series C)
5billion dollars per quarter
peak
Pre-2008 crisis (early 2008)
VC Investment Volume (Seed-Series C)
2.3billion dollars per quarter
trough
Post-2008 crisis (Q3 2008)