Carta announced seed valuations are skyrocketing more than ever before. Between Q4 and Q1, things went completely vertical. The top 5% of seed rounds are topping $175 million valuations. It was up 3x over the last year. And even the 50th percentile, we're talking about $45 million seed rounds, which is insane. A typical seed round used to be $15 million, maybe $20. You buy 10% for $1.5 million, $2 million. And now if you're doing that, you're actually under the 25th percentile. And you might think this sounds a lot like 2021. Actually, it's double 2021. Does this make you sweat as an investor? We're about to raise our next fund. And I'm doing a lot of data gathering about portfolio construction. When you run a portfolio construction model, you're saying, I've got $100 or $200 million. I'm going to make X bets at this check in this fund. Now I'm deciding, am I going to make $2 million checks or $10 million checks? Where is inflation going? Is the AI bubble going to keep going? Is it going to fall dramatically?
things went completely vertical. The top 5% of seed rounds are topping $175 million valuations. It was up 3x over the last year. And even the 50th percentile, we're talking about $45 million seed rounds, which is insane. A typical seed round used to be $15 million, maybe $20. You buy 10% for $1.5 million, $2 million. And now if you're doing that, you're actually under the 25th percentile. And you might think this sounds a lot like 2021. Actually, it's double 2021. Does this make you sweat as an investor? We're about to raise our next fund. And I'm doing a lot of data gathering about portfolio construction. When you run a portfolio construction model, you're saying,
I've got $100 or $200 million. I'm going to make X bets at this check in this fund. Now I'm like, am I going to make $2 million checks or $10 million checks? Where inflation is going? Is the AI bubble going to keep going? Is it going to fall dramatically?