Close Menu
TechBrunchTechBrunch
  • Home
  • AI
  • Apps
  • Crypto
  • Security
  • Startups
  • TechCrunch
  • Venture

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Learn how to raise seed rounds from top VCS in 2025

July 10, 2025

Belkin will no longer support most WEMO devices and their WEMO apps

July 10, 2025

Mockly has actually created a fake DM generator that is user-friendly

July 10, 2025
Facebook X (Twitter) Instagram
TechBrunchTechBrunch
  • Home
  • AI

    OpenAI seeks to extend human lifespans with the help of longevity startups

    January 17, 2025

    Farewell to the $200 million woolly mammoth and TikTok

    January 17, 2025

    Nord Security founder launches Nexos.ai to help enterprises move AI projects from pilot to production

    January 17, 2025

    Data proves it remains difficult for startups to raise capital, even though VCs invested $75 billion in the fourth quarter

    January 16, 2025

    Apple suspends AI notification summaries for news after generating false alerts

    January 16, 2025
  • Apps

    Belkin will no longer support most WEMO devices and their WEMO apps

    July 10, 2025

    Mockly has actually created a fake DM generator that is user-friendly

    July 10, 2025

    YouTube removes its trending pages and now trend list

    July 10, 2025

    As X loses CEO, daily use is decreasing and competition is growing

    July 10, 2025

    Google adds inter-image generation capabilities to VEO 3

    July 10, 2025
  • Crypto

    Vitalik Buterin reserves for Sam Altman's global project

    June 28, 2025

    Calci will close a $185 million round as rival Polymeruk reportedly seeks $200 million

    June 25, 2025

    Stablecoin Evangelist: Katie Haun's Battle of Digital Dollars

    June 22, 2025

    Hackers steal and destroy millions of Iran's biggest crypto exchanges

    June 18, 2025

    Unique, a new social media app

    June 17, 2025
  • Security

    French police arrest Russian basketball player accused of ransomware: Report

    July 10, 2025

    Authorities arrest four hackers related to UK retail hacking

    July 10, 2025

    Jack Dorsey says his “safe” new bitchat app hasn't been tested for security

    July 9, 2025

    Get the exhibition tables on TechCrunch Confuse 2025

    July 9, 2025

    How to protect your mobile number from SIM swap attacks

    July 9, 2025
  • Startups

    7 days left: Founders and VCs save over $300 on all stage passes

    March 24, 2025

    AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

    March 24, 2025

    20 Hottest Open Source Startups of 2024

    March 22, 2025

    Andrill may build a weapons factory in the UK

    March 21, 2025

    Startup Weekly: Wiz bets paid off at M&A Rich Week

    March 21, 2025
  • TechCrunch

    OpenSea takes a long-term view with a focus on UX despite NFT sales remaining low

    February 8, 2024

    AI will save software companies' growth dreams

    February 8, 2024

    B2B and B2C are not about who buys, but how you sell

    February 5, 2024

    It's time for venture capital to break away from fast fashion

    February 3, 2024

    a16z's Chris Dixon believes it's time to focus on blockchain use cases rather than speculation

    February 2, 2024
  • Venture

    Learn how to raise seed rounds from top VCS in 2025

    July 10, 2025

    Save up to $475 for 5 days to all stages before prices rise

    July 10, 2025

    David George on the Future to be released in 2025

    July 9, 2025

    Edo Liberty explores missed links for Enterprise AI in 2025

    July 9, 2025

    Avoid the pitfalls that stall startup funding with TC at every stage

    July 9, 2025
TechBrunchTechBrunch

Startup funding squeeze likely to continue as VCs struggle to replenish their coffers

TechBrunchBy TechBrunchApril 3, 20243 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Telegram Email


Many startups are hoping that the gradual opening of the IPO window and the prospect of lower interest rates later this year will eventually encourage venture capitalists to be stingy with capital.

But it's unlikely that the startup funding challenge will get much easier any time soon, largely due to venture capitalists' own fundraising challenges.

U.S. VC funds raised just $9.3 billion in the first quarter, according to PitchBook data. At this pace, VC funding will end in 2024 with just over $37 billion, the lowest amount raised since 2013 and a 54% decrease from last year. .

Like startups, VCs struggle to raise new capital from supporters called limited partners, such as endowments, foundations, and pension funds. A significant decline in IPO and M&A activity over the past few years has meant that LPs have had poor cash distributions from their investments in VC funds.

“We are coming to the end of the 2020-2021 period. [LPs] Carsten Morin, co-head of venture capital at HiVista Strategies, an asset management firm that invests in venture funds, said: “Now they're licking their wounds and saying, 'Oh, no, I invested at the top of the market.' It takes a while for the handouts to show up.”

Other limited partners say they will be extremely cautious about investing until there is a significant increase in startup IPOs. The success of Reddit and Astera Labs' services isn't enough to get LPs excited about adventure again.

Branded companies will continue to raise money, but there may be less capital available to invest in startups than before. Consider IVP as an example. The 43-year-old venture firm closed a $1.6 billion fund last month, down more than 11% from the $1.8 billion it raised in 2021.

But for small, new ventures, attracting new capital from LPs may not be so easy. “A lot of people may be leaving the business over the next few years,” said Chris Duvos, managing director at Ahoy Capital, which invests in funds and startups.

This isn't good news for established startups, but the situation isn't all doom and gloom. PitchBook estimates that dry powder, the amount of capital that VCs still have to invest from previous funds, remains high.

However, that amount will decrease unless the LP opens the safe again.

“One low-funding quarter doesn't determine the future of VC,” said Kyle Stanford, principal venture capital analyst at PitchBook. “However, if this situation continues, it will hinder the completion of the deal.”



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Learn how to raise seed rounds from top VCS in 2025

July 10, 2025

Save up to $475 for 5 days to all stages before prices rise

July 10, 2025

David George on the Future to be released in 2025

July 9, 2025

Edo Liberty explores missed links for Enterprise AI in 2025

July 9, 2025

Avoid the pitfalls that stall startup funding with TC at every stage

July 9, 2025

TC starts all stages in Boston, six days until the end of savings up to $475

July 9, 2025

Leave A Reply Cancel Reply

Top Reviews
Editors Picks

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025
About Us
About Us

Welcome to Tech Brunch, your go-to destination for cutting-edge insights, news, and analysis in the fields of Artificial Intelligence (AI), Cryptocurrency, Technology, and Startups. At Tech Brunch, we are passionate about exploring the latest trends, innovations, and developments shaping the future of these dynamic industries.

Our Picks

Learn how to raise seed rounds from top VCS in 2025

July 10, 2025

Belkin will no longer support most WEMO devices and their WEMO apps

July 10, 2025

Mockly has actually created a fake DM generator that is user-friendly

July 10, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

© 2025 TechBrunch. Designed by TechBrunch.
  • Home
  • About Tech Brunch
  • Advertise with Tech Brunch
  • Contact us
  • DMCA Notice
  • Privacy Policy
  • Terms of Use

Type above and press Enter to search. Press Esc to cancel.