You would possibly assume given the chatter within the startup world that enterprise capitalists are quick on funds — in any case, we’re listening to about younger tech corporations discovering themselves marooned between phases, hitting up traders with smaller capital swimming pools than prior backers and turning to fairness crowdfunding to maintain their money balances wholesome.
And but new data from PitchBook and the Nationwide Enterprise Capital Affiliation point out that whereas the tempo of U.S. enterprise capital funding is slowing — extra right here on the worldwide perspective — American enterprise capitalists are sitting atop extra investable capital (dry powder) than ever earlier than.
Much more, the tempo at which enterprise traders are accreting funds is elevated in comparison with historic norms, that means that private-market traders are in combination not struggling to boost, even when their portfolio corporations might discover themselves in a really completely different scenario.
The query bouncing round our minds this morning is why — why are enterprise investments slowing when a lot capital has been raised by VCs to take a position?
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