02 November 2023•
Though SEED stage valuations in the UAE continue to increase in size, nearly 5X from averaging $5M valuations at the Seed stage in 2019 to $25M in 2023YTD, there have been significant fluctuations and drops in Series A valuations.
Series A startups in the UAE held valuations around $60M on average in 2021, but today in 2023, that average valuation has dropped to $42M.
Inflated valuations also have a role to play in the current VC winter, as down the decelerating growth of the current economic climate coupled with the increasing cost of capital.
Thus, early stage startups at the seed stage are much more resilient in comparison to Series A startup valuations.
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