Looming startup failures are giving VCs a reality check

FOR years, venture capitalists could sleep easy, knowing that an influx of easy money was helping to prop up startup valuations. Now, some portfolio companies are unravelling because that money has dried up, and venture capital (VC) firms have to brace themselves for a wave of startup failures.

The industry has begun to see instances of down rounds and startup struggles. The valuation of Thailand’s largest crypto exchange, Bitkub, fell to around US$184 million following an investment from gaming firm Asphere, announced last week. It was a significant haircut from the more than US$1 billion valuation it was assigned in a deal with Siam Commercial Bank, which fell through last year.

Singapore-headquartered Circles.Life, backed by Warburg Pincus, has reportedly been given 180 days to turn the company around, prompting cuts across departments and a management reshuffle.