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VCs are racing to pay more to get smaller pieces of less profitable companies

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It’s data season, with groups like Silicon Valley Bank (SVB), CB Insights, PitchBook and Crunchbase News putting out data sets that we’re having fun exploring. This morning, we’re adding one more to our arsenal.
The Exchange spent some time this week diving into the SVB “State of the Market” report for the fourth quarter. As is common from the bank’s publications, it’s a dense riff of charts and notes, ranging from economic data and trade figures to venture capital statistics.

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While perusing the collected information, we found an interesting pattern: Venture capital investors are racing to pay more to buy smaller pieces of startups that are less profitable than before.
While that may sound somewhat rude, it isn’t. Instead, the capital crush that we’ve seen overtake startups around the …

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