Record High Deal Flow and Tale of Two Markets Define Venture Landscape in 2023
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This year has seen record numbers of companies across stages seeking financing, presenting a deal flow challenge for many venture funds.
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The market has bifurcated into very different dynamics based on stage and sector, with early-stage AI-focused startups seeing high optimism while later-stage companies face a post-bubble reset.
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For later-stage companies, 2023 will likely involve a continued reckoning as cash balances drop, forcing financing, sales, or shutdowns.
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Highly sought-after later stage companies that met growth targets pre-bubble are seeing preemptive offers or relying on internal financing.
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Looking ahead, early-stage deal flow may normalize as the AI field gets more crowded, with the focus shifting to traction over hype.