Pre-IPO Exit Valuation Multiples On the Rise. Acquisition Exit Multiples Strong.

Growing demand from a wide range of public market investors is increasing VC exit multiples according to PitchBook. Acquisition exit multiples are also at a recent high, driven in part, according to Steven Ogunro of CrossWork, by the record number of SPACS formed in 2020 and 2021. The 2020 IPO cohort of unicorns returned an average of 117% to investors over a median time frame of 2.2 years according to a Crunchbase report. Acquisition premiums over the same time frame were even higher with a significant spike in Q4 2020.