Sun. Aug 14th, 2022

Despite the company Capital asset class that is at historic levels of dry powder, many investors are not betting, leaving their portfolio companies looking for funding.

Venture capital financing has declined across the board this year, but the tone of the impact of this temporary downturn on companies is beginning to change. The mood at the start of the slowdown was that only underpowered startups would struggle, while good companies would normally raise or raise bridge funding — not that they’d ever call it that — and pick up a decent round next year.

But now it seems that more companies are struggling.

Elizabeth Yin, a general partner and co-founder of the pre-seed-focused Hustle Fund, tweeted last week she started receiving emails from founders who had raised a seed round but were struggling to extend their runway, abandoned by their previous investors.

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