Info Edge founder Sanjeev Bikhchandani has revealed that early-stage startup valuations—pre-money rounds—have recovered to the $10–12 million range in 2024 and 2025, back to levels last seen in 2020–2021. He highlighted that while average cheque sizes dipped in 2022, higher equity stakes for investors kept overall deal sizes steady
🧭 Context: From Boom to Correction to Recovery
- In 2020–21, startup valuations surged across all stages due to low interest rates and pandemic-era optimism.
- By 2022-23, valuations fell sharply—Series A dropped ~42%, late-stage rounds saw even steeper declines
- Data from Q1 2025 shows a clear rebound: median Series A valuations climbed to $39.9 million (a 33% rise), Series B to $168M, and Series C to $225M buttondown.com.
⚖️ Why This Matters
- Investor sentiment reset: VCs are back to writing checks at levels seen before the crash, albeit with greater emphasis on capital efficiency and actual metrics
- AI boom influence: A flood of capital into the AI space—53% of global VC in H1 2025—has driven valuations upward, especially in SaaS and enterprise-focused startups
- Stronger startup fundamentals: CEOs emphasize runway, growth efficiency, and unit economics—real performance matters again .
🔮 What’s Next?
- Tighter investor scrutiny: Valuations are healthy but justified by performance, not hype.
- Booms in deal exits: Q2 2025 saw $67.7 billion in VC exits—the strongest since 2021
- M&A resurgence: Early 2025 saw the most venture-backed M&A activity since 2021—550 deals totaling $71 billion
✅ Bottom Line
The rebound to 2020–21 startup valuations signals renewed investor zeal combined with cautious, performance-focused discipline. With AI surging and exits gaining momentum, today’s startup ecosystem balances opportunity with careful vetting.
