A handful of companies are blessed with an abundance of potential investors right now, says one founder at a New York investment firm with more than $7bn under management. “There is endless demand, an insatiable appetite, they can raise any amount of money at virtually any price.”
But today’s market for venture capital funding is “a tale of two cities”, adds the co-founder, Peter Hébert of Lux Capital. The bifurcation is between companies who have defence or AI wares on offer, and those who do not.
As the wars in Ukraine and the Middle East continue and the AI hype persists, the two sectors are being heavily targeted by investors. This concentration of interest raises the question of how difficult it is for US companies overall to find funding to take them to the next level.