Why This Is the Most Investor-Friendly Venture Capital Market of the Last Decade
According to PitchBook, the current VC landscape is offering broader access to promising deals at more favorable valuations
In their latest Venture Monitor, PitchBook and the National Venture Capital Association found that Q2 2023 was the most investor-friendly environment of the last decade. During turbulent markets, VCs typically have access to a broader range of opportunities at more favorable valuations. We believe that Alumni Ventures is well-positioned to build professional-grade VC portfolios in this current climate.
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Most Investor-Friendly Environment of Last Decade
U.S. VC Dealmaking Indicator by Quarter
Source: PitchBook-NVCA, “Venture Monitor Q2 2023,” July 12, 2023
Other Key Takeaways
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Low Valuations
Deal value continues to lag significantly in 2023, with $85.6 billion committed YTD — off pace from a 10-year high of $347.5 billion raised in 2021. - Home
Record Dry Powder
U.S. VC dry powder remains at a record high due to sidelined investor capital, with over $300 billion in cumulative overhang from vintage years 2015 to 2022. - Home
Robust Deal Count
While valuations have declined, early-stage deal count remains robust. VCs have completed an estimated 2,603 deals in 2023, which is on pace to match 2021 and 2022 investment activity. - Home
Acquisitions Dominating Exits
The majority (~60%) of exit value YTD has been generated by acquisition, largely due to the challenging nature of public markets.
Source: PitchBook-NVCA, “Venture Monitor Q2 2023,” July 12, 2023
For investors, the dominant themes of the past quarter have revolved around strengthening their existing positions and making high-confidence investments in new enterprises. ... With dwindling capital availability and more stringent deal terms, investors wield an upper hand at the deal negotiation table.
At Alumni Ventures, we believe the smartest approach to venture investing is a steady, consistent allocation in a portfolio of diverse, vetted assets. This strategy is intended to help minimize risks and maximize opportunities for return.
We also believe that Alumni Ventures is well-positioned to build accredited investors professional-grade venture capital portfolios. Our team of ~50 full-time investing professionals evaluates hundreds of investment opportunities every year, and we’ve backed 1,200+ unique portfolio companies. Alumni Ventures is the #1 most active venture firm in the U.S., and the #3 most active in the world, according to PitchBook’s 2022 rankings.
See below to learn how you can partner with Alumni Ventures to take advantage of this investor-friendly environment.
Want to learn more?
View all our available funds and secure data rooms, or schedule an intro call.
New to AV?
Sign up and access exclusive venture content.
Contact [email protected] for additional information. To see additional risk factors and investment considerations, visit av-funds.com/disclosures.