How Reddit Grew Its Ad Business, Bolstering IPO HopesRead Now

Unicorn Deals Drive Valuations to Record Highs

When coronavirus fears sent stocks tumbling this spring, venture capitalists expected startup valuations to follow. 

Instead, late-stage valuations for U.S. startups have risen in the first half of 2020 as the stock market, shaking off fears of a pandemic-caused recession,  rebounded.

The median valuation for Series C or later-stage financings increased to a new high of $120 million in the first half of this year, from $80 million for 2019, according to data provided to The Information by research firm PitchBook, which looked at pre-money pricing, or the value of a company excluding the recent round of funding. Propelling the rise, tech unicorns like DoorDash, Instacart and Stripe raised capital to sustain growth and to protect themselves from economic uncertainty. 

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How Reddit Grew Its Ad Business, Bolstering IPO Hopes
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