Venture capital dealmaking in the US has stayed at historically high levels in recent months, despite a partial retreat from the coronavirus pandemic-era boom in start-up financing that has followed this year’s decline in tech stocks.
The surprising resilience in the VC market, revealed in the latest quarterly data from PitchBook and the National Venture Capital Association on Thursday, comes as cash has continued to flood into the sector. Investors poured $151bn into venture funds in the first nine months of this year, topping the previous full-year record of $147bn set in 2021.
“There are even larger funds being raised, and a lot of dry powder — there’s still a very vibrant market out there,” said Aydin Senkut, founder of Felicis Ventures, a Silicon Valley VC firm.