“Looking for a Ride” – a new cartoon that illustrates how VCs are shifting their investment strategy in the last quarter. CB Insights reported a 23% global decline in venture funding this quarter, compared to last. Some of the most significant pull-backs are hedge funds that became very active investors in venture capital as a way to seek yield. For example, Coatue Management saw a 24% decline in the number of deals in Q2 compared to last year – and the infamous Tiger Global (which was making an investment a day last year) saw a 4% drop in deal volume. The primary segment of the market impacted by this are mid stage startups, who are having a particularly torrid time. These companies became used to hedge funds leading rounds at premium valuations, with compressed due diligence.

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