Valuations of startups have quietly rebounded to all-time highs. Some investors say the slump is over.

Generative AI businesses aside, the last couple of years have been relatively difficult for venture-backed companies. Very few startups were able to raise funding at prices that exceeded their previous valuations. Now, approximately two years after the venture slump began in early 2022, some investors, like IVP general partner Tom Loverro, are saying that the worst of the downturn is behind us and the startups that survived should shift from cash preservation mode to spending money on growth. These are not entirely empty words. According to PitchBook data, valuations for all but seed-stage companies dropped in 2023 compared to the year prior. But during the first six months of 2024, prices investors were willing to pay for new deals of U.S.-based companies not only recovered, but also reached an all-time high for median early- and late-stage deals, according to the latest report from PitchBook and the National Venture Capital Association. “The valuations for companies that are getting term sheets have been high,” said Stephanie Choo, a partner at fintech-focused Portage Ventures.