Wilson Sonsini | The Entrepreneurs Report – Private Company Financing Trends: Q1 2024

Key Features and Developments in This Report

Celebrating Asian American and Pacific Islander Heritage Month

In a compelling interview, Wilson Sonsini partner Salil Gandhi talks with Notable’s Robin Li. They delve into the influence of Li’s identity and personal experiences on her career trajectory and explore the changing landscape of Asian American & Pacific Islander representation in the tech and venture capital sectors.

Valuations Show Mixed Signs of Recovery Early

2024 saw mixed signals in early-stage valuations, following notable highs in the previous year. Seed valuations matched the previous year’s median, but showed a quarter-over-quarter drop compared to Q4 2023, while Series A and B valuations displayed slight increases over two consecutive quarters.

Fundraise Amounts Up Across All Stages for Third Consecutive Quarter

Despite mixed valuations, signs show that the substantial reserves of dry powder from 2022 and 2023 are starting to come off the sidelines. This is evidenced by the consecutive increases in fundraising amounts across all stages, with Series C and later stages hitting a two-year fundraising peak.

Should Businesses Stop Incorporating in Delaware?

We address Elon Musk’s recent X (formerly Twitter) post stating, “Never incorporate your company in the state of Delaware,” after the Delaware Court of Chancery rescinded his compensation package at Tesla. The discussion explores Delaware’s continued dominance as the preferred state of incorporation for businesses despite emerging debates questioning its status.

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