PitchBook report – Accounting for the overcapitalization of VC

Q2'23 was the first quarter since pre-2020 where there was an aggregate deficit in capital supply (e.g., aggregate demand for VC capital higher than aggregate supply of capital)
Median time between rounds is currently at 1.5 years, with expectations that this figure will inch upwards.
$86bn has been invested through Q2'23, though $17bn of that has gone to two deals (OpenAI / Stripe). By comparison, $348bn was invested in 2021 over the full year.
Early Stage VC (Series A and B) currently shows a demand to supply ratio for VC capital between 1.25x - 1.5x, while late stage VC (Series C and Series D) is nearing 3x for the same metric. Any figure above 1x demonstrates a shortage of VC capital relative to supply.
Down rounds finally saw a bit of a spike in Q2'23, up to 15% of completed rounds (highest % since 2013).

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