The are different types of investors involved in venture, there are different financial products offered to venture backed companies and there’s a more active M&A market for venture than ever before. It’s not just that there is more capital in the market, but also that the venture capital market is much more developed.

It’s comes down a bit given the performance of public markets, but venture capital dollars looking for deals are higher than pre-pandemic. According to data firm Preqin, venture capital AUM (assets under management) reached a record of $2 trillion. There has never been more capital available to invest in startups in the past decade, despite the caution in deployment. So without further ado, below are three reasons founders and VCs can be optimistic about the future, even in today’s market. Embracing a positive attitude is part of what’s going to help us get out of this mess, and as an early stage investor, I’m optimistic by nature. We need to remind ourselves an important fact: in every crisis there’s also opportunity. In reality, cycles are normal in business in we’re in the midst of a correction that will hopefully do what it says on the tin: “correct” a lot of the bad practices that were embraced in 2020-2021 when capital was cheap and plentiful. In crypto, it all seems to be going sideways. Unicorns weren’t an exception and public companies fared even worse. In Israel at least, the trickle of layoffs has become a steady stream. If you’re looking for doom and gloom, it’s enough to open any newspaper or tech blog to convince yourself the sky is falling and that the ‘good times’ are never coming back.

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