Bridge round boomed at the end of last year
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Josh Wolfe, partner at Lux Capital, predicted that “dry powder” will prove to be “wet powder” as venture capital funds choose to back existing portfolio companies through rough. bottom. times Too many new investments. Carta’s data seems to confirm his hunch. The frequency of bridge rounds spiked in the last quarter of 2022. Anna
A call for help may come from your own portfolio
A month ago, we warned you that it would be a mistake to assume that the record levels of dry powder we kept hearing about would automatically be sent to new startups. It’s true that US VC alone has billions of dollars in overhang, but it’s possible that most of this capital must be dedicated to supporting ailing startups that are already part of the portfolio. There is a nature.
This is why Lux Capital partner Josh Wolfe said the dry powder is actually already wet. “All the money raised at peak valuations will be spent supporting zombie companies from The Walking Dead that are unable to raise outside funding and have to rely instead on insider rounds,” he said. rice field.
