Bridge rounds boomed on the finish of final 12 months
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Lux Capital companion Josh Wolfe predicted that “dry powder” would show to be “moist powder ” as enterprise capital funds decide to assist current portfolio corporations by tough occasions over making new investments. Knowledge from Carta appears to verify that his hunch was proper: The frequency of bridge rounds boomed over the past quarter of 2022. — Anna
The requires assist could be coming from your personal portfolio
One month in the past, I warned that it might be a mistake to imagine that the document ranges of dry powder we stored listening to about would robotically go to new startups. Whereas it’s true that VCs within the U.S. alone are sitting on billions in overhang, they could must dedicate a big share of this capital to supporting ailing startups which might be already a part of their portfolio.
This is the reason Lux Capital companion Josh Wolfe says that dry powder is definitely already moist. “All the cash raised at valuation peaks will get spent propping up ‘strolling useless’ zombie corporations that may’t increase outdoors cash and as an alternative have to show to insider rounds,” he mentioned.
