Lower valuations and lots of unspent cash are the ingredients for an eventual upturn, says PitchBook.
Lack of exits, as IPOs are infrequent, has VC managers selling part of their stakes to others, but at a discount.
With an anxiety-prone stock market not showing a lot of lift after last year’s losses, companies are holding off on going public.
Venture capital and private equity boosted their valuations mightily in the past 20 years.
Private debt fundraising has stagnated in the first half of 2022 amid an economic backdrop of rising rates, and a slowdown of global growth.