Startup Runway Foundation, Inc.’s Post

According to Pitchbook: We are in a deep down cycle in early stage venture, Seed and Series A. The graph below shows that the number of funds raised, in the size range of fund size of $10 million and $500 million, peaked at 450 funds in 2019. In 2024, there will be <100. That is a decrease of about 80%! The amount of capital available in the <100 funds raised (the AUM) in 2024 is also down more than 80%. There is a history of funds raised in down cycles doing quite well, generating great returns. Why? In part because entry investment valuations at Seed and Series A are down to rational valuations, approaching what one might even call bargain valuations (excepting genAI like ChstGPT of course, where valuations are the highest multiples in software valuation history). Secondly, we are in a technology "Super Cycle" with ML/AI infusing all corners of technology, whether disrupting traditional B2B SaaS markets worldwide or growing foundational layer large language models like ChatGPT available to use by anyone WW, at reasonable cost, even for startups! Valor VC is pleased to be one of the few with a new institutional funds, seed lead investing in AI-augmented B2B SaaS. Got a great B2B SaaS company that is ready to scale the team and customer base? Let us know at Valor VC! Lisa Marie Calhoun Lynne Laube William L. Startup Runway Foundation, Inc. Atlanta Startup Podcast