The Decline of VC Market Continues

Venture Capital Market Sees Slowdown Amidst Higher Interest Rates and Volatility

The venture capital market has experienced a significant slowdown since its peak in 2021. The market saw a decline in activity as higher interest rates and volatility in publicly traded tech stocks scared away investors. Furthermore, the collapse of FTX in 2022, a major player in the cryptocurrency market, added to the market’s challenges. These factors have resulted in a contraction in the VC market, with startups raising $16 billion in Massachusetts last year, a 26 percent decrease from 2022. This marks the second consecutive year of contraction for the VC market, reaching its lowest amount raised since 2019.