Though the ultimate totals for enterprise funding for the 12 months received’t be revealed for some time, there’s little question 2023 was a painfully sluggish 12 months.

In keeping with a Crunchbase report, seed and angel funding in 3Q23 was down 27% in {dollars} from the earlier 12 months. The variety of offers fell much more dramatically by over 40%. {Dollars} and offers invested have continued to say no each quarter because the starting of 2022.

Exterior of life sciences, the startup panorama was a wasteland for each founders and buyers.

In a typical 12 months, I put money into 6–8 startups. In 2023, I invested in 2. The 2 angel teams I’m concerned in collectively often put money into round 15 firms per 12 months. This 12 months, we invested in 7, nearly all in life sciences.

In my portfolio of round 150 investments, it’s been greater than a 12 months and half since I’ve had a optimistic exit. Meaning any new investments have to return out of my retirement financial savings as an alternative of reinvesting the winnings. The bar is clearly greater now than after I’m taking part in with home cash.

Nevertheless, I’m able to put money into the suitable alternatives. My angel teams have funds sitting within the financial institution able to deploy. Nonetheless, it’s arduous to search out something we need to put money into.

2021 Was a Bubble. It’s Over.

Sure, I hear you. Tens of 1000’s of founders waving their arms, screaming as loud as they’ll, “Over right here, take a look at us, put money into us, we’re able to take your cash.”

I hate to interrupt it to you, however most of you aren’t prepared. Those which might be prepared will not be providing enticing phrases.

In 2021, the inventory market was on a tear. The SPAC bubble meant any firm might go public with an absurd valuation. NFTs and Web3 made random doodles price tens of millions.

Firms had been getting acquired or going public at loopy valuations. Each exit meant a whole bunch of tens of millions of {dollars} to reinvest in new startups. Huge firms had been establishing billions greenback enterprise investing arms. Retirement funds and household…