Should you had to sum up the 2022 enterprise capital market in a single phrase, that phrase may very well be contradictions.
Enterprise funds have report dry powder — deployable capital available — and but funding continues to steadily decline. There’s seemingly extra speak of backing ladies and other people of coloration within the trade than ever, and but the numbers are headed in the other way. VCs mentioned publicly that they have been specializing in corporations on the trail to profitability, however that wasn’t true for even a minute.
So whereas many enterprise corporations mentioned they’re largely sitting out investing this 12 months as they await valuations to fall, it’s, once more, largely unfaithful.
What does appear to be true, although, is that some VCs are utilizing this 12 months’s uncertainty as an excuse to keep away from doing the work it takes to debate valuations and assess TAM on potential investments into corporations with actual buyer bases. As a result of they aren’t backing nobody — they’re simply backing everybody however you.