Venture Capitalists Face a Reckoning as Funding and Deals Slow

Venture capitalists are reckoning with their worst quarter in almost a decade as economic uncertainty and lackluster returns have prompted investors to hold back following the startup funding boom in 2021.

Global funding to startups fell 23% in the the second quarter from the first, to $108.5 billion, according to a recent report from CB Insights. While the US drove almost half of all funding — $52.9 billion — that was still down 25% from the previous quarter and marked its lowest funding amount since 2020. The report indicates that the drubbing the crypto and public markets have taken in recent weeks is affecting private companies as well.