Curious Compass

Curious Compass

The Future of VC

Navigating the path Ahead

Bernardt Vogel's avatar
Bernardt Vogel
Aug 12, 2023
∙ Paid

Venture capital (VC) has played a pivotal role in funding innovation and high-growth startups over the past decades. However, the industry is now facing winds of change.

Venture Capital Firms (VCs) play a critical role by aggregating funds from their pool of investors and funneling these resources towards entrepreneurs with promising and innovative proposals. This symbiotic relationship allows investors to potentially achieve returns that surpass those of equivalent public markets, while simultaneously enabling startups to secure the necessary capital to cultivate and bring their novel business ideas to fruition.

INDUSTRY SNAPSHOT

  • In the first quarter of 2023, global VC funding reached $76 billion, marking a 53% decline compared to the first quarter of 2022

  • This decline in funding was despite the inclusion of two large deals: a $10 billion investment into OpenAI and a $6.5 billion round for Stripe

  • Without these two large deals, Q1 venture funding would have been even lower, close to $60 b…

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