In Q1, U.S. startups secured $91.5 billion in venture capital, marking an 18.5% increase from the previous quarter and the second-highest quarterly figure in a decade. However, analyst Kyle Stanford expressed skepticism regarding venture capital dealmaking, pointing to shattered expectations for significant exits by 2025 due to stock market volatility and recession fears linked to tariffs. Notably, 44% of the funding amount was heavily concentrated in OpenAI’s $40 billion round, masking broader challenges faced by many founders in the current market environment.
Startups attracted $91.5 billion in venture capital funding in Q1, signifying a significant increase but overshadowed by broader market concerns and potential liquidity issues.
Despite this seemingly positive news, Kyle Stanford, lead U.S. venture capital analyst at PitchBook, appears to be the most bearish about VC dealmaking since he started covering this market 11 years ago.
Liquidity that everyone was hoping for doesn't look like it's going to happen with everything that's gone on the past two weeks, as Stanford reflected on market conditions.
Of the $91.5 billion raised by U.S. startups last quarter, a staggering 44% was invested in just one company: OpenAI's $40 billion round.
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