But how is this public market correction impacting the late-stage private world? We’ve seen prices in some of the most richly valued areas fall significantly, leaving valuations of some prominent private SaaS companies, for instance, looking quite different than they did just a few months ago.
The public market correction is also causing a slowdown in late-stage deal activity. Don’t get us wrong, activity levels remain near all-time highs, but things are tapering off. Looking at first-quarter industry data, venture capital activity as a whole dropped 19% quarter-over-quarter. The number of US$100M+ financings has also fallen each month since reaching a fever pitch in November of last year (Figure 2).