The soaring valuations of the early 2020s are, finally, coming back to earth.<\/p>\n
This week, PitchBook data revealed that 15.9% of venture-backed deals in 2025 so far have been down rounds, marking a decade high. Additionally, almost every major IPO listing in Q2 hit the public markets below its peak valuation, the data from PitchBook adds. Some examples include MNTN (at IPO, valuation was down from $2 billion to $1.1 billion), Circle (dropping from $7.7 billion to $5.8 billion), Hinge (valuation at IPO was $6.2 billion, down from the $23 billion high), and Chime (going public at $9.1 billion from a $25 billion peak valuation).\u00a0<\/p>\n
AI continues to be a bright spot in many ways\u2014but isn\u2019t entirely exempt either, as 29.3% of down rounds were in PitchBook\u2019s broad AI and machine learning vertical. Of course, the biggest names in AI\u2014like OpenAI, reportedly heading towards a $500 billion valuation, and Anthropic, reportedly raising at a $170 billion valuation\u2014continue to hit eye-popping levels. And lower on the food chain, AI is still consistently valued at a premium, with PitchBook reporting that median Series B step-up for AI startups is 2.1x, well above the median of 1.4x that all other categories fetch.\u00a0<\/p>\n
The IPO market is, some would say, back. (I think it pretty much is, but also has been for a while, for those with the stomach for it.) In Q2, venture-backed startups in the U.S. generated $67 billion in exit value, PitchBook said\u2014the highest since the last quarter of 2021. But here\u2019s a sobering fact: There are still lots of unicorns out there, so distributions back to VC firms and by extension their LPs are limited.\u00a0<\/p>\n
An unsurprising but ice-cold (and very down-to-earth) number to leave you with: The unicorns that have made their public debut this year comprise a mere 1% of all U.S. unicorns.<\/p>\n
See you tomorrow,<\/p>\n
Allie Garfinkle Joey Abrams curated the deals section of today\u2019s newsletter. Subscribe here<\/a>.\n<\/p>\n Venture Deals<\/p>\n – Reprieve<\/b> Cardiovascular<\/b><\/a>, a Milford, Mass.-based developer of intelligent decongestion management therapy designed to treat acute decompensated heart failure, raised $61 million in Series B funding. Deerfield<\/b> Management<\/b> led the round and was joined by Arboretum<\/b> Ventures<\/b>, Lightstone<\/b> Ventures<\/b>, Sante<\/b> Ventures<\/b>, Genesis<\/b> Capital<\/b>, and others.<\/p>\n – Protege<\/b><\/a>, a New York City-based developer of data sets designed for AI training, raised $25 million in Series A funding. Footwork<\/b> led the round and was joined by CRV<\/b>, Bloomberg<\/b> Beta<\/b>, Flex Capital<\/b>, Liquid 2 Ventures<\/b>, Shaper<\/b> Capital<\/b>, and others.<\/p>\n – Evertune<\/b><\/a>, a New York City-based AI marketing platform, raised $15 million in Series A funding. Felicis<\/b> Ventures<\/b> led the round and was joined by Eniac<\/b> Ventures<\/b>, NextView<\/b> Ventures<\/b>, and angel investors.\u00a0<\/p>\n – Isaac<\/b> Health<\/b><\/a>, a New York City-based health technology company for brain health and dementia care, raised $10.5 million in Series A funding. Flare<\/b> Capital<\/b> led the round and was joined by Industry Ventures<\/b>, Black Opal Ventures<\/b>, Meridian Street Capital<\/b>, B Capital<\/b>, and Primetime<\/b> Partners<\/b>.<\/p>\n – Thread<\/b><\/a>, a New York City-based developer of an AI service desk for managed service providers, raised $8 million in funding. Integr8d<\/b> Capital<\/b> and David<\/b> Bellini<\/b> led the round and were joined by Headline<\/b>, Adam<\/b> Slutskin<\/b>, Vince<\/b> Kent<\/b>, and others.<\/p>\n – Infinity<\/b> Loop<\/b><\/a>, a New York City-based AI-powered contract intelligence platform, raised $5 million in seed funding. Glasswing<\/b> Ventures<\/b> and TIAA<\/b> Ventures<\/b> led the round and were joined by Plug<\/b> and<\/b> Play<\/b>, Restive Ventures<\/b>, and angel investors.<\/p>\n – Studio<\/b> Atelico<\/b><\/a>, a San Francisco and London, U.K.-based developer of an AI engine for video games, raised $5 million in seed funding from Air<\/b> Street<\/b> Capital<\/b> and angel investors.<\/p>\n – Prefer<\/b><\/a>, a Singapore-based food tech company, raised $4.2 million in funding. At One Ventures<\/b> and Chancery<\/b> Hill<\/b> Capital<\/b> led the round and were joined by existing investor Forge<\/b> Ventures<\/b>.<\/p>\n – Archestra<\/b><\/a>, a London, U.K.-based platform designed to enable companies to securely use AI agents and connect them to internal data sources safely, raised $3.3 million in pre-seed funding. Concept<\/b> Ventures<\/b> led the round and was joined by Zero Prime Ventures<\/b>, Celero Ventures<\/b>, RTP Global<\/b>, and others.<\/p>\n Private Equity<\/p>\n – Crestview Partners<\/b> and DigitalBridge<\/b> Investments<\/b> agreed to take WideOpenWest<\/b><\/a>, an Englewood, Colo.-based broadband provider, private for approximately $1.5 billion.\u00a0<\/p>\n – Agility<\/b> Retail Group<\/b>, backed by San Francisco Equity Partners<\/b>, acquired Infinity<\/b> Retail Services<\/b><\/a>, a Turtle Lake, Wis.-based designer and manufacturer of retail fixtures and displays. Financial terms were not disclosed.<\/p>\n – Blue Owl Capital <\/b>acquired South Reach Networks<\/b><\/a>, a Miami, Fla.-based fiber infrastructure provider. Financial terms were not disclosed.\u00a0<\/p>\n Exits<\/p>\n – Cardinal Health <\/b>agreed to acquire Solaris<\/b> Health<\/b><\/a>, a Fort Lauderdale, Fla.-based health care platform, from Lee<\/b> Equity<\/b> Partners<\/b> for $1.9 billion.<\/p>\n Other<\/p>\n – PNC<\/b> Bank<\/b> agreed to acquire Aqueduct<\/b> Capital<\/b> Group<\/b><\/a>, a New York City-based broker dealer. Financial terms were not disclosed.<\/p>\n People<\/p>\n
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Email:<\/strong> alexandra.garfinkle@fortune.com<\/a>
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