It seems like private market valuations for startups are getting slashed because of overall economic outlooks. In the past few months we have seen heavy declines in the public markets and now the private markets are following behind.
Fidelity Investments is cutting some of its portfolio company valuations.
- Reddit valuation is down by more than a third.
- Stripe valuation is down by about 13%
- Bytedance valuation is down by 13%
- Instacart is valued at half of its value from last year.
These are only private valuations inside of Fidelity and this was back in April – so its expected that these valuations have dropped even more since then.
It’s a tough time economically for everyone!