The startup bubble that no one is talking about
13 days ago
- #venture capital
- #fundraising trends
- #AI startups
- Graph shows Form D filings with 'fund I' to 'fund IV' in entity names, peaking in Q3 2022.
- Form D filings indicate venture capital fundraising trends under Regulation D.
- Venture firms use 'Fund [Roman numeral]' to sequence funds, reflecting fundraising cycles.
- Venture funding is expected to decline sharply post-2022 peak.
- Early 2020s saw a surge in VC funds due to increased investment access.
- Interest rate hikes and market stabilization led to fewer new venture funds.
- Venture funds typically last ~10 years with 2-4 years for capital deployment.
- AI startups have seen high valuations but may face funding scarcity soon.
- Predicted decrease in VC funding will lower valuations and pressure startups to monetize.
- AI industry may contract due to funding scarcity and rising compute costs.