The Venture Capital Crash

What this short covers

Venture capital and appears to offer consulting services for raising capital or selling a company, suggesting a focus on financial aspects and valuation within the startup ecosystem.

Transcript

Hey guys, this is actually very scary because venture capital firms are dying. The number of venture capital firms investing in startups in the US since 2021 has literally decreased by more than 25%. Since 2021, over 2,000 venture capital firms have gone dormant. So what's happening is that most of that money now that is allocated from li limited partners into venture capital firms is now allocated on some of the tier one firms like Seoia Kleiner and Excel. One of the other issues is that startups are staying longer private. You see SpaceX, Stripe, Data Bricks. They're taking much longer than the typical five to sevenyear horizon to go IPO and to provide liquidity to those venture firms. So ultimately what this creates is that for early stage venture capital firms that are starting out emerging managers and then also for early stage startups funding is dwindling. We'll love to hear your

thoughts on the comment section.

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