This chart is a perfect illustration of the pain still to come in venture.
The explosion of ‘unicorns’ in 2021 and 2022 is the venture bubble in action. It will take years to unwind, and venture returns will continue to suffer along the way.
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The Rapid Rise of Zombie VCs
Zombie VCs are surging: 25% fewer active investors in 2024 vs 2023, and 50% down from 2021's peak. These funds can't make new investments, but their short-term focus can still cause major problems for founders in their portfolio.
Getting from Series A to Series B is a Tall Task
This chart tells an important story for early-stage founders. Only 10% of startups that raised a Series A in 2022 have raised a Series B two years later. That drop of nearly 2/3 from 2018 represents a brutal cliff for founders.
Your Mushroom Farm is Not a Tech Company
Most businesses aren't a good fit for venture capital. Picking the right sources of funding is one of