Even as Y Combinator reveals the latest startups in its cohort for this winter, we have poor news for founders: the global venture capital market shrank in Q1 2023, and it would have been even worse if it were not for a few mega deals, according to Crunchbase (disclosure: my former employer) and PitchBook reports. And here in the United States, things are looking grim.
Startups are not the only ones suffering, either. Venture capitalists are also seeing their ability to fundraise being hampered as they digest a raft of mis-marked startup deals from the last boom and a dearth of exit volume.
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This dip in funding for venture investors implies that the current startup investing downturn may not turn course anytime soon.
The Exchange will have notes soon on what appears to be an expan …
