Investment Cadence in H1 2023 Explored: Insights from 15 Investors
Investors Share Insights on Investment Cadence in H1 2023 and Future Plans
chandni
The survey results indicate a diverse range of investment activities, with some investors meeting their intended pace while others falling slightly short. However, a prevailing sentiment suggests that a slower investment cadence is becoming the new normal. Rajeev Dham, a partner at Sapphire Ventures, and Mark Grace, an investor at M13, both observed that the rapid investment pace witnessed during the pandemic years has subsided, leading to an adjustment period for many.
Interestingly, those investors operating at a slower cadence expressed a preference for a more cautious approach. Gen Tsuchikawa, CEO of Sony Ventures, explained, "We have always been selective in our investments, and we are currently maintaining flexibility in the cadence of our investments."
Dham also emphasized the importance of prudence in the foreseeable future, stating, "Once we understand the new operating cadence of businesses and appropriately evaluate the pricing, we can proceed accordingly. Another significant factor to consider is the reduced participation of the most active investors in the 2018-2021 period. As they retreat, there is likely to be less capital available for startups, which can impact pricing dynamics."
In contrast, Grace maintains an optimistic outlook, asserting, "I believe the dealmaking cadence will continue to rebound. Optimism is essential in this industry!"
Logan Allin, managing partner and founder of Fin Capital, revealed that his firm emerged as the most active fintech investor globally in Q1, thanks to its focus on early-stage startups led by experienced founders.
Allin shed light on his firm's confidence, explaining, "The increased rate of new company formations can be attributed to management teams passing the reins to professional managers for IPOs, acquisitions, or buyouts, as well as seasoned entrepreneurs with underwater options opting to move on."
To gain further insights into the investment landscape of the past six months and the strategies these investors plan to employ in the coming months, continue reading the full article.
