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Number of US Venture Capital Firms Falls as Cash Flows To Tech's Top Investors
The number of active venture capital investors, firms that invest in startups, has dropped more than a quarter from a peak in 2021 [non-paywalled source], as risk-averse financial institutions focus their money on the biggest firms in Silicon Valley. From a report: The tally of VCs investing in US-h...
From a report: The tally of VCs investing in US-headquartered companies dropped to 6,175 in 2024 -- meaning more than 2,000 have fallen dormant since a peak of 8,315 in 2021, according to data provider PitchBook. The trend has concentrated power among a small group of mega-firms and has left smaller VCs in a fight for survival. It has also skewed the dynamics of the US venture market, enabling start-ups such as SpaceX, OpenAI, Databricks and Stripe to stay private for far longer, while thinning out funding options for smaller companies.
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