Venture capital investment is shifting, with a focus on AI startups but also supporting solid non-AI businesses. Insight Partners, with $90 billion AUM, exemplifies this. Managing director Ryan Hinkle notes their rapid growth in investments, from $750 million over ten years to surpassing $1 billion quarterly in the present. While good companies can still find lucrative deals, the valuations are not as high as prior years, reflecting a necessary market correction called the 'great reset', fostering healthier growth dynamics.
When I joined Insight, we had raised a cumulative $1.2 billion ever, across four funds. We had put only $750 million of capital into investments at that point. We do more than a billion dollars per quarter today.
Good, growing companies that are not selling AI as their core technology can still raise healthy checks, but the multiples they can expect won't be as high.
Funding rounds are still 30% lower on a multiple of ARR basis than 2019. Forget the 2021 bubble times.
Hinkle likes to call these current times 'the great reset' and says it's a super healthy thing.
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