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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/04\/12\/venture-market-reset\/<\/a><\/br> Ever since the<\/span> tech downturn began affecting startups, a question kept coming up: What if we are witnessing a correction?<\/p>\n The question implied that the way deals were done in the past couple of years, mostly during late-2020 and nearly all of 2021, were the exception, not the rule, and venture investing was returning to normal. But what exactly does that mean?<\/p>\n The Exchange explores startups, markets and money. <\/em><\/strong><\/p>\n Read it every morning on TechCrunch+<\/a> or get The Exchange newsletter<\/a> every Saturday.<\/em><\/strong><\/p>\n Well, 2021\u2019s frenetic deal-making environment, which saw generous valuations being handed out, was no longer the ideal anyone could hope to return to. In retrospect, investors and observers started to acknowledge that a market in which due diligence often got sidelined wasn\u2019t healthy.<\/p>\n Valuations are a trickier topic. VCs like a good deal, but they also don\u2019t want to lose money on past investments. Still, it\u2019s slowly become clear that many startups\u2019 valuations had gotten out of hand for a bit. With crossover funds mostly out of the picture, maybe we could nurse our collective hangovers together and pretend that 2021 never happened.<\/a><\/p>\n The problem, though, is that the venture market isn\u2019t simply returning to 2020 levels, at least not in all respects. Today, we\u2019re diving deep into CB Insights\u2019 report on Q1 2023 trends<\/a>, which shows that mega-rounds and late-stage deal share are at their lowest point in years.<\/p>\n And that\u2019s an understatement. Last quarter had the fewest venture rounds on record (7,024) since the second quarter of 2020<\/em>, per CB Insights, in addition to seeing a 12% decline from Q4 2022.<\/p>\n This fact alone could indicate that we\u2019re in a market that\u2019s correcting back to 2020 levels, but breaking down the data reveals a more concerning picture.<\/p>\n<\/p><\/div>\n <\/br><\/br><\/br><\/p>\n
\nThe venture market may be correcting more than we think to pre-COVID times<\/br>
\n2023-04-12 21:54:07<\/br><\/p>\n
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\nFewer late-stage deals are a cause for concern<\/h2>\n