Opinions and Editorials

Apr. 12, 2023

Real Clear Markets: A Look Into the Growing Reluctance to Fund Startups by Paul Michel

For more than a century, startups have been critical to U.S. technological advancement. They could not exist today without venture-capital funding, which enables them to form and grow. So it’s alarming that venture fundraising is now at a nine-year low.

What is causing investors to stop putting money into venture capital?

While supply-chain problems, inflation fears, and similar headwinds are doubtless part of the answer, these general economic conditions don’t tell the whole story. A large part of the blame goes to political and legal developments that discourage venture-capital investing, in which individuals and financial institutions bet on promising new companies.

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