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Is startup in danger of suffering a lengthy, painful slowdown?
The gathering clouds for startups around the world don't seem to have broken into storms, leaving us wondering if the market is really that bad for venture funding.
Employment growth in the critical U.S. market is strong, the value of software stocks may have bottomed out, and there is plenty of dry powder in the market looking for a deal. We could be set up for a startup recovery.
We aren't ready to make a formal prediction, but data and market dynamics could put startups in a good spot in the back half of the year. There is a bull case for startup for the rest of the year.
We are seeing venture capital activity slow from a busy 2021. This was something that was going to happen.
According to the report, American venture capitalists have raised more than 120 billion dollars in the last four years. Yankee private-market capital allocators are on track to raise a record $138.9 billion this year and crush the $85.4 billion raised in 2020.