Why are seed<\/span> deals still so expensive?<\/p>\n The global venture capital market has contracted steadily over the past year, but seed valuations have not<\/a>, avoiding the massive cuts to round size and median valuations that later startup investment stages have suffered. And according to Accel\u2019s Philippe Botteri<\/a>, it appears there\u2019s a simple answer to why seed deals are holding up so well: rapid growth.<\/p>\n The Exchange explores startups, markets and money. <\/em><\/strong><\/p>\n Read it every morning on TechCrunch+<\/a> or get The Exchange newsletter<\/a> every Saturday.<\/em><\/strong><\/p>\n The seed market is a bit weird right now. On one hand, PitchBook reports<\/a> that at a total of $3.2 billion in the third quarter, pre-seed and seed deals in the U.S. have \u201cfallen to pre-pandemic levels.\u201d So yes, while we\u2019re seeing seed deals decline in number and value in key markets, the data looks very different when you slice it on a per-deal basis.<\/p>\n![\"\"](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2021\/10\/exchange-banner-sq-gry-plus.jpg?w=300\")
<\/a>CB Insights reported<\/a> that the median early-stage deal was worth $2.2 million through the third quarter. That\u2019s tied with 2021\u2019s record for the global market. In the U.S., PitchBook data indicates that median valuations at the seed stage are ticking higher yet again this year, coming in at $12 million through the third quarter, up from last year\u2019s record of $11.1 million.<\/p>\n