Why seed valuations haven’t fallen (yet)

At Eniac, we’ve been studying recent changes in the seed market — and what we’ve found surprised us, especially when it comes to valuations.

To understand the market, we pulled deal data on recent quarters from PitchBook, as well as conducting our own Seed Sentiment Survey. Some of the changes are obvious: The market has slowed, with seed capital deployment falling 39% in Q1 2023 compared to two quarters earlier. In addition, the number of deals tracked by PitchBook at every stage has fallen by more than 45% year over year (the biggest drops are at Series C and D).