Raphael Mukomilow
Contributor
Raphael Mukomilow is partner and head of growth at Picus Capital. His focus is later-stage and growth investments.
Pierre Bourdon
Contributor
Pierre Bourdon is an investor at Picus Capital.
After the challenging year that was 2022, one might think that the coming months are not looking great for VCs or founders.
But, “dry powder” — money raised by VCs that hasn’t yet been deployed — has risen to record levels. Venture capital investors in the United States, for instance, are sitting on a $290 billion powder keg that’s ready to ignite a new wave of tech startups.1 Investors are understandably cautious. But if handled wisely, the payoff could be big, especially because valuations have normalized drastically.
But why has this happened and what does it mean for the tech industry? And why does the current market environment offer an unprecedented opportunity for investors?
Tech stocks are seeing significant valuation corrections
Tech stocks have been through a storm this past year.
The Nasdaq composite index has seen losses of 32% since last January. For instance, Meta, Amazon, Netflix and Google have seen their shares plummet by 63%, 45%, 48% and 34% since …
