Boom, Bust, Repeat: The Cyclical Surge and Purge of VC Investors

The number of Investors in the VC ecosystem exploded during the internet boom of the late 1990s. Investing was easy and money was being made by every VC with any exposure to tech.

After the bust in 2000, the number of Investors contracted back to where it was before the boom.

And guess what’s happening now? The same.

About a year ago I ran a survey that asked what % reduction in the number of active Investors to expect as a result of the Startup ecosystem adjusting to a post-ZIRP environment. More than 3/4 of the responders said “at least 25%” with 1/2 saying “around 50%”.

Seems to be tracking…..