Are there too many VC dollars seeking too few viable business opportunities in 2020?

Q: Are there too many VC dollars seeking too few viable business opportunities in 2020?

Of course not.

On the one hand, to any of this that have been doing this for a while, there are a ton of new funds in market (1,000+ new funds since 2016!) and the exiting funds have raised vastly more capital than before. We’ve had 2 records years in a row of VC investment:

But … but look what’s happened in tech and the Cloud:

Explosion!

The top tech companies alone are worth $5 trillion together!

There are >100 public tech unicorns and far more private ones.

All in, there is a fairly tiny amount of venture capital relative to the long-term value of the companies they invest in.

And as tech continues to expand and grow its role in the economy, so should venture capital grow, at least at the same rough pace.

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Published on January 17, 2020

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