if you had to sum up the venture capital market of 2022 in one word, that word could be: opposites.
Venture funds have a record dry powder — deployable capital on hand — and yet funding continues to decline steadily. There is seemingly more talk than ever about supporting women and people of color in the industry, and yet the numbers are going in the opposite direction. VCs publicly said they were targeting companies on their way to profitability, but that wasn’t the case for a minute.
So while many venture firms have said they are largely sitting still this year as they wait for valuations to fall, it is, again, largely untrue.
What is doing However, what seems to be true is that some VCs are using this year’s uncertainty as an excuse not to do the work necessary to discuss valuations and assess TAM for potential investments in companies with real customer bases. Because they don’t support anyone – they just support everyone but you.