The numbers have spoken • TechCrunch

Bridge rounds blew up late last year

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Lux Capital partner Josh Wolfe predicted that the “dry powder” would turn out to be “wet powder” as venture capital funds opt to back existing portfolio companies through raw contracts.time on new investments. Carta’s data seems to confirm that his hunch was correct: the frequency of bridge rounds exploded in the last quarter of 2022. — Anne

Calls for help can come from your own wallet

A month ago, I warned that it would be a mistake to assume that the record levels of dry powder we were hearing about would automatically go to new startups. While it’s true that VCs in the US alone are sitting on overhanging billions, they might have to put a lot of that capital into supporting struggling startups that are already in their portfolio.

That’s why Lux Capital partner Josh Wolfe says dry powder is actually already wet. “Any money raised from valuation spikes will be spent supporting ‘dead walking’ zombie companies that can’t raise outside money and must instead turn to insider rounds,” he said. .