📉 Insights from the 2023 PitchBook Report
The 2023 PitchBook report states a 38% decrease in active VC investors.
🔄 A Shift in VC Trends.
The 2023 PitchBook report states a 38% decrease in active VC investors. This is measured as existing funds that made less than 2 investments in 2023 and goes on to start talking about Zombie funds, all pretty negative.
🌧️ Beyond the Downturn.
The decline in VC activity isn't necessarily a crisis. The report's data doesn't give a clear reason as to the underlying status of the 38% of funds?
➡️ VCs are being cautious, absolutely.
➡️ ️ Waiting for better times to invest due to market uncertainties, bloody right.
➡️ Some have pretty much been wiped out…. Mmm yes, if they have marked their books correctly.
🤔 But 38%, as we are led to believe are gone? no, not at all.
🕰️ A Quick Historical Snapshot.
VC trends reflect broader economic cycles. The late 1990s dot-com boom saw VC investments peak at $100 billion in the U.S. by 2000 (NVCA). Post-bubble, figures plummeted to $19 billion by 2003. The 2008 financial crisis further impacted VC, with investments falling from $30.8 billion in 2008 to $20.6 billion in 2009 (PwC & NVCA). The 2010s, however, witnessed a resurgence, driven by tech advancements, with VC funding exceeding $130 billion by 2018 (NVCA).
This history underlines VC's adaptability, with the current 38% decrease in active investors in 2023 (PitchBook) seen as part of ongoing cycles. Such insights are vital for navigating the VC domain.
🎯 Strategic Investment.
This shift shows it is less about quick investments, with more consideration to careful planning. This indicates a phase of strategic patience rather than a downturn, focusing on startups with clear profitability paths.
🚀 Founders' Approach:
For founders, it's crucial to identify active investors, for the top of the funnel focus on those recently announced, as they are in their harvest period and deploying to new opportunities.
What do you think, what is the right strat for finding and reaching investors ?
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