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A VC cataclysm has begun. Early 2024 will be rough. But it won't change anything.

Business Insider · 1y

The VC industry is facing a reckoning in early 2024 as startup failures and VC firm layoffs continue. In 2023, Y Combinator, Sequoia Capital, Greycroft, and OpenView all experienced layoffs and cuts. The industry had built a house of cards in the previous decade, driven by a startup-funding frenzy and opportunistic investors. However, rising interest rates and cash conservation caused valuations to fall and investors to become stingy. As a result, many startups have failed, leading to a "mass extinction" event. Despite the challenges, VCs expect to repeat the cycle of greed and frenzy once fortunes reverse.