Daily Management Review

WSJ: Venture capital funds raise lowest amount in 9 years


The fourth quarter of last year saw venture capital funds raise $20.6 billion, which was 65% less than a year earlier and the lowest amount since 2013.

The number has more than decreased by half as compared to the third quarter of 2022. The Wall Street Journal stated this with reference to the findings of the analytical firm Preqin's computations.

A range of investors, including pension funds and family offices that oversee assets of wealthy families, were investing in venture capital funds in earlier years when shares of technical businesses were steadily increasing and potential startups were frequently appearing.

Both the companies themselves and the volume of investment in venture funds are now being impacted by the complex macroeconomic scenario. The situation is made worse by a steep drop in the number of initial public offerings (IPOs). According to estimates from audit and consulting firm EY, the number of IPOs last year dropped by 45% to 1333, and the money raised through them dropped by 61% to $ 179.5 billion.

source: wsj.com