Funding’s not-quite winter thaw

AS THE year winds to a close, it seems that venture capital (VC) is heading in the opposite direction. Funding taps appear to be opening up again, judging by the number of funding releases I’ve been receiving.

But investors aren’t jamming down on the accelerator; it’s currently less hockey stick and more of a gradual curve. VC partners I spoke to say that there is a general cautiousness in the ecosystem, even as valuations have become more attractive over the funding winter.

With fundraising tough not just for startups but VCs, too, they are making sure every dollar invested gets the returns their limited partners are looking for. Following the boom of 2021 and 2022, many VC funds have portfolio companies that are struggling to remain viable in this persistently high-interest rate and uncertain macroeconomic environment.