Recovery in Series C financings

After a challenging stretch for later-stage startups, Series C activity has shown signs of improvement in the last few quarters. In early 2024, companies at this stage faced extended fundraising timelines, compressed valuations, and a six-year high down round prevalence. Those trends have since reversed, possibly showing signs of recovery.
Deal sizes climb toward prior highs
After hitting a six-year low of $23.4M in early 2024, median Series C deal sizes rose sharply through early 2025, ending at $50.0M by the end of the second quarter. The recent increase has brought Series C pricing back toward the upper end of its recent range. Additionally, median pre-money valuations have more than doubled since the Q2 2024 low of $202M, reaching $459M in Q2 2025.

Step-up multiples show consistent growth
The gap between Series B post-money valuations and Series C pre-money valuations followed a similar trajectory over the same period, moving from near-flat pricing in early 2024 back to a median step-up multiple of 1.4x in Q2 of this year. The recovery in step-up multiples back to historical levels suggest a more measured rate of valuation increase between stages, settling between the compressed pricing environment of last year and the elevated expansion rates seen during the 2021 peak period.

Decline in down rounds
The prevalence of down rounds has declined sharply from last year’s peak, which saw 29% of Aumni-tracked Series C rounds completed at valuations lower than their most recent round. While the current levels are well above the 2-3% lows of late 2021 and early 2022, they are closer to historical norms than last year’s elevated rates.

Looking forward
Overall, companies raising Series C rounds in 2025 are more frequently achieving terms that maintain or improve their prior valuations, with step-up multiples reflecting steady recovery. This could suggest that pricing dynamics have stabilized relative to the volatility seen last year.
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