Rise of 'zombie' VCs haunts tech investors as plunging valuations hammer the industry
Publishing timestamp: 2023-02-16 05:12:01
Summary
Investors are warning of a potential emergence of "zombie" venture capital firms in the coming years due to higher interest rates and fears of an oncoming recession. These firms will be unable to raise their next fund and will instead focus on managing their existing portfolios before eventually winding down. This could lead to thousands of layoffs in the VC industry, as well as a decrease in the number of new funds being raised.
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Keywords: business news, technology, bitcoin/usd coin metrics, softbank group corp, venture capital, internet, nasdaq composite, markets, investment strategy,