Persistent Funding Challenges: Startups Feeling the Squeeze as VCs Struggle to Replenish Funds
But it’s unlikely that startups’ fundraising slog will become much easier soon, mostly because of venture capitalists’ own capital-gathering challenges.
In Q1, U.S. VC funds raised only $9.3 billion, according to PitchBook data.
At this pace, VC fundraising will end 2024 at just above $37 billion, the lowest capital raised since 2013 and a 54% decline from last year.
PitchBook estimates that dry powder, the amount of capital VCs still have to invest from previous funds, remains high.
“One low fundraising quarter is not going to make or break the future of VC,” said Kyle Stanford, lead venture capital analyst at PitchBook.
