- Median valuations for late-stage startups have risen to record highs, according to PitchBook data.
- Intense competition for deals in the hottest startups has pushed up prices, investors told Insider.
- Investors are moving to younger startups and restructuring term sheets in order to cope, they said.
About a year ago, Ben Narasin, a partner at venture capital firm New Enterprise Associates, had just missed out on getting his firm into the Series A round of an enterprise startup he had made an angel investment in.
Turns out, the founder had sent a note to Narasin at an old email address. But given his personal connection to the founder, Narasin figured he’d have a good shot at the next funding round. So he waited.
That turned out to be a mistake. By the time Narasin circled back with the founder a few months later, the Series B deal was already done. Another firm had swooped in with an investment that valued the startup at more than $1 billion – about 25 times higher than when Narasin originally invested – and the founder was ready to sign the term sheet that evening.