Strategic CFO | I help CEOs with growth and exits | Corporate Development, Financing, Strategic Planning | Over $10 billion in transactions
The decline in active VC firms by 38% is a sobering statistic that prompts reflection on the venture capital industry's dynamics. While OpenView's exit is notable, it's part of a larger narrative of investors pulling back. This leads to a critical question: are we witnessing a temporary market fluctuation or a long-term strategic shift in venture capital? Additionally, how might this investor retreat affect competition within the VC space itself? Will this create an opportunity for new or existing players to capture greater market share, or will it consolidate power among the few who remain active? It would be interesting to debate the potential long-term effects of this shift, both on investors and the startups they fund.
📉 The number of active investors in US VC, which we defined as making two or more deals, plummeted by 38% in the first three quarters of 2023 compared to the same period last year. That translates to 2,725 fewer firms making deals. But where did they go?
