Equity As the economy falters, tracking the money behind the money
Sep 7, 2022
Rebecca Szkutak, a TechCrunch+ venture capital reporter, joins to break down the economic impact on startups and VCs. They discuss whether the downturn is as dire as perceived and delve into the struggles faced by unicorns amid rising uncertainty. The conversation highlights the complex LP-VC dynamics, exploring management fees and capital calls. They also touch on valuation challenges for new funds and the anticipation around the upcoming YC Demo Day, contrasting it with previous investor sentiments.
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Startup Market Health
- The venture capital flow into startups seems steady, contradicting doomsday predictions.
- This suggests the startup market may be healthier than portrayed.
A Divided Market
- The startup market is divided, with some companies thriving and others struggling.
- Many unicorn companies may be struggling more than is apparent.
Over-Capitalized Startups
- One company raised funding three times in about a year.
- They hadn't even spent the prior round's funds before raising again.