PYMNTS.com January 2, 2025
The number of active U.S. venture capital (VC) investors has reportedly fallen since 2021.
That was a peak year for the VC world, but as the Financial Times (FT) reported Wednesday (Jan. 1), things have changed now that cautious financial institutions are shifting their money to Silicon Valley’s biggest startups.
Last year, 6,175 VCs invested in U.S.-based companies, down from 8,315 in 2021, the report said, citing data from Pitchbook. That has left power concentrated among a handful of big VC firms, leaving their smaller counterparts struggling.
In addition, the trend has offset the dynamics of the venture market in the U.S., letting companies like OpenAI and Striep remain private longer while cutting off avenues of funding for smaller firms,...
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