The bull market is over… What are the implications for venture capital?
TLDR: Venture managers are changing their behavior with respect to new deal pacing and valuations. Although pacing has slowed, the market has not fully adjusted to the new market as investors and entrepreneurs are still evaluating how to participate in this new market economy.
Venture managers are changing their behavior with respect to new deal pacing and valuations. Although pacing has slowed, the market has not fully adjusted to the new market as investors and entrepreneurs are still evaluating how to participate in this new market economy. The period defined by 2020-2021 is highly anomalous, and can not be used as a proxy or anchoring point for private market valuations, exit activity, or returns. Fundraising cycles will slow and deployment periods will revert back to 2.5-3 year cycles as managers deploy capital less aggressively and adjust to the new…
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