Product reviews, deals and the latest tech news

Is venture capital already recovered?

Last week, financing activity remained brisk despite ongoing concerns about a probable recession, falling tech stocks, and a decrease in startup investment activity. In the wake of a significant slowdown in the spring, venture firms have announced an astounding $8 billion in fresh capital commitments in only five days.

Take into account the following: New Enterprise Associates (NEA) recently reported the successful completion of its two most recent funds, totalling $6.2 billion; Cowboy Ventures likewise announced the successful completion of two funds, totaling $260 million; and FJ Labs also disclosed two funds, also totaling $260 million. Other companies include Sapphire Sport ($181m for its second fund closing), Volition Capital ($675m for its sixth fund announcement), Kearny Jackson ($14m), and Dimension ($350m). Companies from outside the United States also joined the fray, such as Highland Europe with its €1 billion fund and a Japanese chemical behemoth with its $100 million fund.

I mean, what’s the deal here? Is the economic slump over? It’s hard to tell for sure, but a number of predictable factors have undoubtedly contributed to the recent rush of activity.

To begin, many ostensibly “new” funds were really closed in the prior year but were not publicised. For instance,, a Woodside, California-based early-stage venture organisation, announced that it is investing from its $300 million third fund (up from its $151 million debut fund and $262 million sophomore fund, both of which it closed in 2019).

Defy co-founder Neil Sequeira claimed that the fund was closed in the middle of last year but that the company kept quiet about it until now since it was still actively investing its prior fund until recently. Time didn’t feel right, he remarked.

The convergence of events, from Russia’s invasion of Ukraine and shattered supply networks to soaring inflation worldwide, made 2022 a year that many would rather forget, and he referred to it as a “interesting moment in the NASDAQ and [regarding] international geopolitical crises” in his remarks.