After investing a significant amount into the Australian tech sector in 2021, major US venture capital firms have dramatically pulled back on local deal making in the second half of the year, new data has shown.
Global Founders Capital, which has made 16 investments in Australian companies over the past three years and is based in San Francisco, did not make a single investment in the second of 2022. “There’s a collective sigh of relief that that stupidity is over. We now have time to understand. We now have time to analyse.”The timing of the surge and subsequent withdrawal of US venture firms from Australia corresponds with the broader correction in the VC market, triggered by interest rate increases, which put an end to access to easy capital at low prices.from Cut Through Venture indicate $638 million was raised by local start-ups in November across 44 deals, down from $1.
Adir Shiffman the executive director of Catapult Group, has a different view on the role of US investors, saying the deals they made during the pandemic were a “net positive for Australian VCs” because they validated the quality of start-ups in the market.
It's all good, we still have cooker Steve Baxter and his family office to fund Aussie Start ups.
US venture capitalists are vultures for quick profit