Venture-backed companies' valuations have been cut in half this year, if Forge Global Holding Inc.'s marketplace is any indication.
Amid rising inflation, a broad decline in public company share prices and economic uncertainty, startup prices and valuations have been plunging across the board, ForgeThursday. At the median, investors are buying private company shares at prices that imply a 50.5% discount from the companies' valuation at the time of their last funding round, according to Forge.
"While investors reacted relatively quickly to the changing economic environment, it has taken shareholders longer to adjust their expectations," Forge said in its report. The decline in value of private company stocks has come at a time when public company stock values have been plummeting. The value of a theoretical basket of stocks made up of the more than 90 Bay Area companies that went public last year is down by about 61%.