Commentary
Venture capital investment is down in the United States. The fundraising environment has become not only tougher for people in venture capital funds but also for entrepreneurs looking to raise capital to build a business.
Prequin is a service that tracks all kinds of data in venture capital. According to its numbers, venture capitalists (VCs) raised $20.6 billion in the fourth quarter of last year in new funding, but that funding is now down 65 percent from last year. It’s also the lowest level of money raised since 2013.
This matters a lot for the health of the American economy.
Venture capital often gets a bum rap because it invests in crazy ideas. Around your kitchen table you might hear this: “Well, I’d never invest in that because you knew it would lose money.” A lot of the time, that sentiment is right. Venture capitalists lose a lot of money investing in businesses that eventually fail….