Less venture capital deals are available these days. Not because of a recession. Or because capital is tight, as such. It’s merely because the exit door is smaller for the venture capitalists with the ample funds.
There is no shortage of funds for new business. There is simply less willing underwriters to get the VCs off the hook, so to speak. Less buyers to speculate on the wares investment bankers have to offer.
In short, poorer market psychology. The recession itself has little to do with it because bank lending is a small factor.
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