VC firm 500 Global is bullish on the sector, despite a slump in funding deployment.
Managing partner Vishal Harnal said, "There is definitely a drop in the allocation towards ventures this year, but it really depends on which markets you are investing in and what the opportunities set in those markets are."
Harnal says that VC firms are taking a long-term view of their investments as startups start prioritizing profitability over growth.
- He adds that while the investment pace has reduced compared to 2021's total, which was an outlier year, "I wouldn't go so far as to say that there is a funding winter."
- 500 Global has over $2.7B worth of assets under management (AUM).
- Notable previous portfolio startups include graphic design software Canva, ride-hailing firm Grab, and fish farming startup eFishery.
Global venture funding deployment slumped by 35% in 2022, with year-end totals reaching $445B.
