Amid a market-wide pullback, the Venture Capital (VC) space, much like the startup space, is evolving with changes in technology and approaches to helping companies launch and grow. Over the last five decades, VC investing has been restricted to large institutions and high-net-worth individuals.
However, some prolific investors have pulled back on investing in the last few years, adopting a wait-and-see approach. The result is a glut of dry powder that has ended up growing into a massive capital gap. A report from CB Insights' State of Venture for the first quarter of 2024 showed that deal-making dropped to a 7-year low in Q1, and was the eighth straight quarter of a drop in equity deal volume.
