Venture Capital: Yesterday, Today and Tomorrow

Rodrigo Ko
The Daily Investor
Published in
6 min readMay 8, 2023

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Yesterday: Fear of Missing Out

In many ways, the early-stage technology boom of 2019 – 2022 can be characterized by “FOMO” (or the fear of missing out).

During this time, strong performance from the public markets trickled into the private landscape and venture capital investors were eager to make investments. Simultaneously, ease of fundraising and the subsequent influx of capital led to increases in dry powder, priming funds to become increasingly more active.

When combined with a growing number of sensationalistic headlines and an unprecedented boost to technological innovation catalyzed by the pandemic — among several other factors like the advent of crypto and lags in global supply chains — the fear of missing out on the right opportunity created the perfect conditions for a highly active venture market.

Photo by Markus Winkler on Unsplash

High Premiums, High Prices

Logically, this increase in activity led to an increase in premiums — the market was prone to produce increasingly larger and more frequent capital raises, and valuations skyrocketed.

This trend was particularly salient in the technology industry, where early-stage entrants were raising record-breaking amounts. For instance, according to a report published by Adventis Advisors, the…

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