VCs are flooded with unprecedented funds but in no rush to deploy capital

Venture capitalists ( VCs) are mostly gripped by the Fear of Missing Out (FOMO) and that sentiment peaks during boom periods like in 2021, but it takes only a few months for risk investors to change tack.

Six months into the new year, despite raising a record $4.7 billion of dry powder compared to $2 billion last year, as per Venture Intelligence data, for investing in startups, over a dozen VC firms, including Lightspeed Venture Partners, Sequoia Capital, Elevation Capital, and a number of smaller sized funds, have closed fewer deals in the first half of this year versus the same period in 2021, data sourced from Tracxn and respective funds showed.