Should you had to sum up the 2022 enterprise capital market in a single phrase, that phrase could possibly be contradictions.
Enterprise funds have report dry powder — deployable capital available — and but funding continues to steadily decline. There’s seemingly extra discuss of backing women and other people of shade within the business than ever, and but the numbers are headed within the opposite direction. VCs mentioned publicly that they had been specializing in firms on the trail to profitability, however that wasn’t true for even a minute.
So whereas many enterprise companies mentioned they’re largely sitting out investing this 12 months as they look ahead to valuations to fall, it’s, once more, largely unfaithful.
What does appear to be true, although, is that some VCs are utilizing this 12 months’s uncertainty as an excuse to keep away from doing the work it takes to debate valuations and assess TAM on potential investments into firms with actual buyer bases. As a result of they aren’t backing nobody — they’re simply backing everybody however you.