If you think it’s tough for startups to raise capital, take pity on VCs over the past years.
Or are the good VCs still raising and the fragmented country-specific VCs in jeopardy?
What’s your view? Let me us know in the comments 👇
Cheers
Alex
#vc#venturecapital#startups#fundraising
If you think it's difficult for startups to raise capital, look at the tough time that VCs have had over the past two years. Speaking to 100, LP and LP's are not easy to get hold of. In fairness though, only 50% of them have returned any capital this year. Everyone expects to return more capital next year, but of course they would say that. However, the big fans are still raising and that's what we're seeing, this consolidation of capital and big rounds coming in from the proper VC's who can support startups on this difficult journey. This fragmented approach hasn't worked and when you look at the capital, a lot of it is not from Europe. And the elephant in the room is this lack of liquidity. So why would people from outside Europe put funds into Europe, even if the entry valuations are cheaper, if they can't get it out? Now everyone is talking about this particular environment as if it's going to get better. Well, is it or have we seen a fundamental shift in the way that startups operate globally? What's your view? Let me know in the comments. Cheers for now.
