Venture market maturing as funds align with private equity

No one knew quite what to expect going into the pandemic, but we were generally prepared for a dramatic slowdown in venture fund activity—both fundraising and capital deployment. That didn’t happen, although there were shifts in activity and, as is often the case, many of the bigger funds got much bigger, as some emerging funds had wildly extended fundraising periods. In general, though, the market remained very active.

As we emerge on the other side (hopefully permanently this time) to face current challenges—especially inflation, staffing issues, and a likely economic slowdown—it seems a good time to assess some of the trends we’ve seen over the past few years.