The Great Retreat: Startups, VCs, and Investment Banks in 2025
douglevin.substack.com
The Great Retreat: Startups, VCs, and Investment Banks in 2025
The downturn rests on a set of reinforcing mechanisms:
- Higher rates and risk premiums since 2022 pulled down public valuations, which dragged private market marks lower.
- Exit scarcity throttled VC liquidity, limiting LP distributions and slowing fundraising.
- Absent crossover investors left late-stage startups cash-starved, forcing insider-led rounds,