Venture capital and private equity investors are becoming concerned over the exit environment, and the majority believe the asset class is overvalued, a new survey from Preqin shows.
Venture capital is the asset class the research firm views most at risk from current economic and market volatility because venture-backed firms have much in common with publicly listed technology companies that have experienced significant investment losses since the beginning of 2022, according to the report. The report cited as an example the year-to-date loss of 53.2% of ARK Investment Management’s Innovation exchange-traded fund.
In addition, only 26% of venture capital investors intend to increase their pace of capital deployment over the next 12 months, down from 43% that expressed that intention in the survey one year ago, while 33% plan to deploy less during the period, compared to only 13% in 2021.
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