EY's VC lead for the US talks about the difficulties in today's venture market and where the silver linings are.
The scale and speed with which the venture market has changed over the past year has caused some whiplash for startups and investors alike. All of a sudden, we find ourselves in an environment with higher inflation, higher interest rates, and much more difficulty being able to raise money, be it equity or debt. While the current venture market does represent a drop from the heady heights of two years ago, in some ways it also marks a return to normal, albeit in a tougher macroeconomic environment.
Jeffrey Grabow is the US venture capital leader at EY, a position from which he has a great vantage point to talk about the problems facing the venture ecosystem today. This includes the difficulties in raising capital, and how much higher the bar is for startups to get equity on board – as well as the more recent complications stemming from the banking sector. He also talks about how this is a great time for startups to distinguish themselves from the pack, and gives advice on how both entrepreneurs and investors can best weather the storm.