From Institutional Investor, January 8:
EY predicts that less than $20 billion will be deployed in the venture capital markets in the first quarter.
After years of raising over $100 billion annually, start-ups seeking funding from venture capital firms may have to prepare themselves for the worst thanks to increasingly challenging market conditions.
An EY analysis noted that in 2023, venture firms invested $140 billion in portfolio companies. In every year since 2018, venture-backed portfolio companies have raised more than $100 billion.
“I’ve put a prediction out there that we won’t hit $100 billion,” said Jeff Grabow, U.S. venture capital leader for EY. “There’s going to be some really big deals getting done, though.”
Venture funding started to slide in 2022, along with the rest of the economy, after a heady few years of fast-paced capital raising. That trend continued in 2023: Just $23 billion was deployed in the fourth quarter, which was 23 percent lower than the third quarter, according to EY....
....MUCH MORE
Previously, January 2022: "Are venture capital's go-go years about to end?"
Alternative headline: Attention Entrepreneurs - You'd Best Get In While The Gettin' Is Good.
Though not nearly as serious as November 2008: "Venture Capital: From the Valley Comes a Warning" during the market meltdown or 2009 when VC's were still in a state of shock after the Great Financial Crisis (New Venture Capital Investment Nearly Comes to a Halt) it does not sound like party time on Sand Hill Road.
