Ever since the tech downturn began affecting startups, a question kept coming up: What if we are witnessing a correction?
The question implied that the way deals were done in the past couple of years, mostly during late-2020 and nearly all of 2021, were the exception, not the rule, and venture investing was returning to normal. But what exactly does that mean?
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Well, 2021’s frenetic dealmaking environment, which saw generous valuations being handed out, was no longer the ideal anyone could hope to return to. In retrospect, investors and observers started to acknowledge that a market in which due diligence often got sidelined wasn’t healthy.
Valuations are a trickier topic. VCs like a good deal, but they also don’t want to lose money on past investments. Still, it’s slowly become clear tha …
