Valuations Are at Record Highs

Capital planning solutions for the healthcare industry

Valuations Are at Record Highs

Valuations are at record highs, thanks to strong IPO exits, broader economic recovery, and growing participation by nontraditional investors. Those alternative investors are also creating competition for the VCs—there are more funding options available to startups now.

Of particular note, early-stage valuations—often pre-revenue—hit record highs in Q1, with median and average pre-money valuations coming in at $40 million and $96.3 million, respectively.

The game has changed on valuations. While there are many ways to calculate valuations on companies, the VCs have driven it to be one thing: stock price times shares. Something is worth what someone is willing to pay for it. And in the current economy, that’s more based on what investors believe you CAN do than on where you’re at currently.

So especially in the life sciences—biotech, medtech, pharma—don’t sell yourself short. If you have a life-saving, world-changing solution, your company may well be worth far more than your balance sheet would indicate.

Check out PitchBook’s 2021 US VC Valuations Report for more insights.

Of particular note, early-stage valuations—often pre-revenue—hit record highs in Q1, with median and average pre-money valuations coming in at $40 million and $96.3 million, respectively.

The game has changed on valuations. While there are many ways to calculate valuations on companies, the VCs have driven it to be one thing: stock price times shares. Something is worth what someone is willing to pay for it. And in the current economy, that’s more based on what investors believe you CAN do than on where you’re at currently.

So especially in the life sciences—biotech, medtech, pharma—don’t sell yourself short. If you have a life-saving, world-changing solution, your company may well be worth far more than your balance sheet would indicate.

Check out PitchBook’s 2021 US VC Valuations Report for more insights.

Valuations are at record highs, thanks to strong IPO exits, broader economic recovery, and growing participation by nontraditional investors. Those alternative investors are also creating competition for the VCs—there are more funding options available to startups now.

Of particular note, early-stage valuations—often pre-revenue—hit record highs in Q1, with median and average pre-money valuations coming in at $40 million and $96.3 million, respectively.

The game has changed on valuations. While there are many ways to calculate valuations on companies, the VCs have driven it to be one thing: stock price times shares. Something is worth what someone is willing to pay for it. And in the current economy, that’s more based on what investors believe you CAN do than on where you’re at currently.

So especially in the life sciences—biotech, medtech, pharma—don’t sell yourself short. If you have a life-saving, world-changing solution, your company may well be worth far more than your balance sheet would indicate.

Check out PitchBook’s 2021 US VC Valuations Report for more insights.