Why This Is the Most Investor-Friendly Venture Capital Market of the Last Decade

According to PitchBook, the current VC landscape is offering broader access to promising deals at more favorable valuations

Published on

Read

2 min

In their latest Venture Monitor, PitchBook and the National Venture Capital Association found that Q2 2023 was the most investor-friendly environment of the last decade. During turbulent markets, VCs typically have access to a broader range of opportunities at more favorable valuations. We believe that Alumni Ventures is well-positioned to build professional-grade VC portfolios in this current climate.

Want to learn more?
View all our available funds and secure data rooms, or schedule an intro call.

New to AV?
Sign up and access exclusive venture content.

Most Investor-Friendly Environment of Last Decade

U.S. VC Dealmaking Indicator by Quarter

Source: PitchBook-NVCA, “Venture Monitor Q2 2023,” July 12, 2023

Other Key Takeaways

  • Home

    Low Valuations

    Deal value continues to lag significantly in 2023, with $85.6 billion committed YTD — off pace from a 10-year high of $347.5 billion raised in 2021.
  • Home

    Record Dry Powder

    U.S. VC dry powder remains at a record high due to sidelined investor capital, with over $300 billion in cumulative overhang from vintage years 2015 to 2022.
  • Home

    Robust Deal Count

    While valuations have declined, early-stage deal count remains robust. VCs have completed an estimated 2,603 deals in 2023, which is on pace to match 2021 and 2022 investment activity.
  • Home

    Acquisitions Dominating Exits

    The majority (~60%) of exit value YTD has been generated by acquisition, largely due to the challenging nature of public markets.

Source: PitchBook-NVCA, “Venture Monitor Q2 2023,” July 12, 2023

For investors, the dominant themes of the past quarter have revolved around strengthening their existing positions and making high-confidence investments in new enterprises. ... With dwindling capital availability and more stringent deal terms, investors wield an upper hand at the deal negotiation table.
PitchBook-NVCA Venture Monitor Q2 2023

At Alumni Ventures, we believe the smartest approach to venture investing is a steady, consistent allocation in a portfolio of diverse, vetted assets. This strategy is intended to help minimize risks and maximize opportunities for return.

We also believe that Alumni Ventures is well-positioned to build accredited investors professional-grade venture capital portfolios. Our team of ~50 full-time investing professionals evaluates hundreds of investment opportunities every year, and we’ve backed 1,200+ unique portfolio companies. Alumni Ventures is the #1 most active venture firm in the U.S., and the #3 most active in the world, according to PitchBook’s 2022 rankings.

See below to learn how you can partner with Alumni Ventures to take advantage of this investor-friendly environment.

Want to learn more?
View all our available funds and secure data rooms, or schedule an intro call.

New to AV?
Sign up and access exclusive venture content.

Contact [email protected] for additional information. To see additional risk factors and investment considerations, visit av-funds.com/disclosures.