Stories of Technology, Innovation, & Entrepreneurship in the Southeast

In its latest “Quantitative Perspectives” report, PitchBook writes about some potential headwinds facing the venture capital industry. They include depressed equity markets, a prominent theme of inflation, and geopolitical turmoil that are contributing to uncertainty.

Among the key takeaways cited are:

• Investors have left themselves vulnerable to valuation corrections by sacrificing protective deal terms in exchange for access to deal flow;
• The prospect of increasing bond yields may reduce venture’s allure for limited partners, but that effect will likely be tempered if inflation persists; and venture capital investment outside of traditional funding hotspots accelerated during the pandemic as investment ticked up substantially in many states.

The report can be downloaded at this link.

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