Venture capital investors wary of dealmaking despite stock market momentum, report says

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Economic Uncertainty News

Private Market,Artificial Intelligence Companies,Public Markets

Venture capital investors in the United States remained cautious about dealmaking amid economic uncertainty, according to a PitchBook-NVCA report released on...

- Venture capital investors in the United States remained cautious about dealmaking amid economic uncertainty, according to a PitchBook-NVCA report released on Thursday, underscoring challenges in the industry despite a rally in public markets.

The report highlights the challenges in the VC space, at a time when the spotlight has been on the massive rounds for artificial intelligence companies.Despite the slowdown in dealmaking, interest rate cuts by the Federal Reserve may stimulate activity. "Secondaries are the best of both worlds. Companies can stay private for longer and investors that want liquidity can get it," Zheng said.

The Dow and the S&P 500 closed at a record high. Markets are waiting for September inflation data, a key data point ahead of the Fed's next move.

 

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