one of the The main reason we have yet to see a meaningful resurgence in late-stage deal activity is the lack of consensus on how to value startups. Nobody wants to pay 2021 prices, but it’s not easy to gauge a startup’s value now.
However, there are signs that a deal is being struck.
Last week, the private equity market Forge Global publish data This shows that the average difference between the price at which secondary sellers want to sell a stock and the price at which buyers want to buy it, also known as the bid/ask spread, has dropped to 17%. That’s the lowest percentage in a year, suggesting buyers and sellers are starting to agree on price.
