tomtunguz.com · 2020-03-12
· 2275d
What Could the Venture Market Look Like in the Coronavirus Era
Tunguz analyzes historical VC market data from the 2008 financial crisis to forecast potential impacts of the coronavirus pandemic on fundraising velocity, round sizes, and valuations. He finds that while deal count remained stable, median round sizes fell 35-40% across Series A-C before recovering over 8 quarters, suggesting valuations—not deal volume—are the primary adjustment mechanism in market downturns.
Metrics in this report
Seed Round Median Size
$0.3millions
Stable throughout 2008 crisis
Series A Median Round Size
$4millions
pre-crisis
2007-early 2008
Series A Median Round Size
$2.6millions
Post-crisis trough in 2008
Series B Median Round Size
$10millions
pre-crisis
2007-early 2008
Series B Median Round Size
$6millions
Post-crisis trough in 2008
Series C Median Round Size
$14millions
pre-crisis
2007-early 2008
Series C Median Round Size
$8.5millions
Post-crisis trough in 2008
VC Investment Velocity
$5billions per quarter
peak
Seed, Series A, B, C rounds in early 2008 pre-crisis
VC Investment Velocity
$2.3billions per quarter
Seed, Series A, B, C rounds in Q2 2008 post-crisis trough