15 Investors Share Their Investment Cadence in H1 2023

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Title: Investment Cadence in H1 2023: Insights from 15 Investors

As part of an ongoing analysis of venture capital performance in the first half of 2023, TechCrunch+ conducted a survey with 15 investors regarding their investment cadence and plans for the second half of the year.

The survey revealed that while some investors were able to maintain their desired investment pace, others fell slightly short. However, there is a general consensus among investors that a slower investment cadence is becoming the new norm. Rajeev Dham from Sapphire Ventures and Mark Grace from M13 emphasized that the rapid investment rate observed during the pandemic years has come to an end, leading to an adjustment period for many in the industry.

Investors who adopted a slower cadence seem to favor a more cautious approach. Gen Tsuchikawa, CEO of Sony Ventures, stated that they have always been selective in their investments and are currently maintaining a flexible investment cadence.

Dham further advocates for prudence in the coming period and suggests understanding the new operating cadence of businesses to make informed investment decisions. He also predicts a potential retreat from the most active investors in the 2018-2021 period, which could result in reduced capital in the startup ecosystem, subsequently affecting pricing levels.

On the other hand, Mark Grace remains optimistic, predicting the rebound of dealmaking cadence. He believes that maintaining an optimistic outlook is crucial in the industry.

Logan Allin, managing partner and founder of Fin Capital, shared insights into his firm’s confidence, stating that their focus on early-stage startups founded by repeat founders allowed them to be the most active fintech investor globally in Q1.

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The article features extensive interviews with investment professionals, including Matt Murphy from Menlo Ventures, Sheila Gulati from Tola Capital, Jason Lemkin from SaaStr, and many others. Each investor shares their experiences and expectations for investment cadence.

Key insights from the interviews indicate that the latter part of 2022 was slow, but investment activities picked up from late February onwards. Q2 saw accelerated investments, particularly in life sciences, digital health, hard tech, and SaaS companies. While some investors experienced busy and active quarters, others focused more on early-stage investments.

Regarding future plans, many investors expect dealmaking activity to remain steady or even accelerate in the back half of 2023. They anticipate an influx of companies that haven’t raised capital in over two years, leading to potential opportunities for investors. However, they also predict a rise in flat and down rounds, but emphasize that valuation should not overshadow building great companies.

Overall, the article discusses the investing climate of the past six months and reveals various strategies and expectations for the coming months.

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Frequently Asked Questions (FAQs) Related to the Above News

What is the investment cadence in the first half of 2023 according to the survey?

The survey reveals that while some investors were able to maintain their desired investment pace, others fell slightly short. However, there is a general consensus among investors that a slower investment cadence is becoming the new norm.

Why is there a slower investment cadence?

Rajeev Dham from Sapphire Ventures and Mark Grace from M13 emphasize that the rapid investment rate observed during the pandemic years has come to an end, leading to an adjustment period for many in the industry.

How are investors approaching the slower cadence?

Investors who adopted a slower cadence seem to favor a more cautious approach. They are being selective in their investments and maintaining a flexible investment cadence.

What advice does Rajeev Dham give for the coming period?

Rajeev Dham suggests understanding the new operating cadence of businesses to make informed investment decisions and advocates for prudence.

What does Logan Allin from Fin Capital say about their investment confidence?

Logan Allin states that their focus on early-stage startups founded by repeat founders allowed them to be the most active fintech investor globally in Q1, showcasing their confidence in the market.

What were the key insights from the interviews with investment professionals?

The interviews revealed that the latter part of 2022 was slow, but investment activities picked up from late February onwards. Q2 saw accelerated investments, particularly in life sciences, digital health, hard tech, and SaaS companies. Some investors experienced busy and active quarters, while others focused more on early-stage investments.

What are the future plans for dealmaking activity?

Many investors expect dealmaking activity to remain steady or even accelerate in the back half of 2023. They anticipate an influx of companies that haven't raised capital in over two years, leading to potential opportunities for investors.

Do investors predict any challenges in the future?

Investors predict a rise in flat and down rounds, but they emphasize that valuation should not overshadow building great companies.

What is the overall focus of the article?

The article discusses the investing climate of the past six months, reveals various strategies and expectations for the coming months, and provides insights from 15 different investors regarding their investment cadence.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Advait Gupta
Advait Gupta
Advait is our expert writer and manager for the Artificial Intelligence category. His passion for AI research and its advancements drives him to deliver in-depth articles that explore the frontiers of this rapidly evolving field. Advait's articles delve into the latest breakthroughs, trends, and ethical considerations, keeping readers at the forefront of AI knowledge.

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