Deal analysis firm Pitchbook today released a new report highlighting how a decline in exits is impacting the startup investment ecosystem.
Among those discoveries? Beyond the generally known fact that most current financing is insider rounds and bridge financing aimed at corporate survival, cashbacks to limited partners (LPs) who provide funds to venture companies are The economy has slowed to the level of the global financial crisis 16 years ago. Meanwhile, the number of VCs and angel investors who invested in startups in the first quarter of this year fell to just 45.5% of investors who did deals in 2021, as LPs closed their checkbooks following slowing profits. .
Pressure is mounting. Venture capitalists are currently investing in unicorn companies valued at $2.5 trillion, and nearly 40% of them have been in venture capital portfolios for at least nine years, according to Pitchbook.
Overall, the balance of companies that have not yet exited has grown to a record high of 57,674 companies, with late-stage companies accounting for 32.4%.