Link: PitchBook: 15.9% of VC-backed deals in 2025 so far have been down rounds, a 10-year high, with AI and ML startups accounting for 29.3% of the down rounds (Allie Garfinkle/Fortune)

The soaring valuations of the early 2020s are now returning to more realistic levels.

Data from PitchBook indicates a significant increase in down rounds, with 15.9% of venture-backed deals in 2025 experiencing declines, a record for the decade.

Further illustrating the market correction, numerous major IPOs of Q2 launched below their highest valuations, such as MNTN, Circle, Hinge, and Chime.

Despite a generally tough environment, AI remains a standout sector, though it has also seen its share of down rounds, affecting 29.3% of companies within this vertical.

On the brighter side, the IPO market shows signs of robust activity. Q2 saw venture-backed startups in the U.S. achieving $67 billion in exit value, the most since late 2021.

However, the reality check shows newly public unicorns representing only 1% of all U.S. unicorns, highlighting persistent challenges in the IPO landscape. See you tomorrow. #

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