VC Fund Size at Least Doubles, Funds and Dollars Raised Drop 50% or More Since 2021

The venture capital (VC) landscape has undergone significant changes since 2021, with the median VC fund size at least doubling while the number of VC funds and total dollars raised have dropped by 50% or more. This trend indicates a consolidation of capital among larger, well-known VC brands, leaving smaller funds struggling. Additionally, the VC market is not purely performance-based, leading to repeated funding of underperforming investors, which impacts the quality of founders. The fundraising and deployment environment for unprofitable companies has decreased by 60%, with capital increasingly concentrating in specific sectors like AI and software. Despite a negative outlook on consumer investing, research involving more than 12,000 startups that raised a Series B since 2010 suggests that many VCs might be overlooking opportunities in this area. The advice for navigating the VC market emphasizes skepticism towards standard practices and the importance of independent verification and data.