American venture capitalists have never had so much surplus money – TechCrunch

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You might think. In the startup world, we’re hearing rumors that venture capitalists are short of funds — after all, we’re hearing that young tech companies are floundering mid-stage, poaching investors from their early backers with smaller pools of capital, and turning to equity crowdfunding. A healthy financial balance.

And yet data from Pitchbook and the National Venture Capital Association indicate that while US venture capital investment is slowing — here in a global perspective — US venture capitalists are sitting on more investable capital than ever before.

What’s more, the pace at which investors are getting funding is higher than historical standards, meaning that private market investors are generally not struggling to raise funds, even if their portfolio companies are in very different situations.

The question on our minds this morning is why – why Are venture investments declining as more capital is raised to invest in VCs?


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