In the fourth quarter of last year, venture capital funds raised $20.6 billion — 65% less than a year earlier and the least since 2013. Compared to the third quarter of 2022, the amount has more than halved. Writes about it The Wall Street Journal with reference to the calculations of the analytical company Preqin.
In previous years, when technology stocks rose steadily and promising startups regularly appeared, a wide variety of investors invested in venture capital funds, including pension funds and family offices that manage the assets of wealthy families.
Now the difficult macroeconomic situation affects both the startups themselves and the scale of investments in venture funds. The picture is also worsened by a sharp decline in the number of IPOs – according to counting audit and consulting company EY, the number of initial offerings last year fell by 45%, to 1333, and the amounts raised during them decreased by 61%, to $179.5 billion.
Read about how the Russian venture investment market has shrunk in Kommersant’s article “Startup Half Empty”.
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