Is the venture market slowing or did crossover funds just bounce? • ZebethMedia
As third-quarter venture capital data rolls in, the ZebethMedia crew is busy parsing the numbers. We’ve looked at fintech results, we’ve touched on the crypto market, and we have a climate startup venture analysis coming this weekend. We’ve also looked at the U.S. venture market and its global analog. The main gist is that while VC investment in the United States is slowing, it appears that the global venture capital market is retarding more rapidly.
The macro picture is, however, an aggregated dataset. By that, we mean that when we consider all venture capital activity, it often includes some non-venture funds. Say, a hedge fund piling into startups in partnership with traditional VC deal-making. Last year, an influx of non-traditional capital helped push total venture capital numbers to new heights, raising startup valuations, and, at times, cutting into the due diligence process and generally shaking up the VC game.
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But now it appears that non-venture capital is ebbing away, leaving us with an interesting question: How much of the venture market slowdown is predicated on venture investors cutting check sizes and slowing their own deal-making cadence, and what fraction comes from non-venture investors simply bouncing?
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