THE FINANCE GHOST: Trouble ahead in venture capital paradise

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The easy money is coming to an end for founders, with capital for the later rounds already starting to dry up, writes FinanceGhost.

It’s easy to assess listed index performance and see that 2022 has been a bear market, with equities down sharply and even the resources index on the JSE having given up nearly all its year-to-date gains. It’s not as easy to think about the downstream impact on the private market, in this case the venture capital ecosystem, as you can’t pull that up as a stock code.

I’m seeing founders on Twitter panicking about liquidity drying up, particularly for the Series C rounds and later. This feedback from the coalface is as close as you’ll get to a stock code in this space...A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

 

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THE FINANCE GHOST: Trouble ahead in venture capital paradiseThe easy money is coming to an end for founders, with capital for the later rounds already starting to dry up, writes FinanceGhost.
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