If you had To sum up the 2022 venture capital market in one word, that word could be contradictions.
Hedge funds have a dry powder record (deployable capital available), and yet funding continues to steadily decline. Apparently, there is more talk than ever about supporting women and people of color in the industry, and yet the numbers are going in the opposite direction. Venture capitalists publicly said they were targeting companies on the road to profitability, but that wasn’t true for a minute.
So while many venture firms have said they will largely not invest this year as they wait for valuations to fall, this is, again, largely untrue.
What does it What appears to be true, however, is that some venture capitalists are using this year’s uncertainty as an excuse to avoid doing the work needed to discuss valuations and assess TAMs on potential investments in companies with real customer bases. Because they don’t back anyone, they just back everyone but you.