While you where downvoted that’s likely somewhat true. VC’s have strong incentives to invest all their money even if it means the fund only breaks even vs turns a small profit.
In turn that drives up many costs like salaries and rent for the startup ecosystem. So, less money likely results in fewer but stronger startups.
The issue is the best returns are for more risky bets that may not be funded in such an environment.
In turn that drives up many costs like salaries and rent for the startup ecosystem. So, less money likely results in fewer but stronger startups.
The issue is the best returns are for more risky bets that may not be funded in such an environment.
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