      Tomasz Tunguz Blog · 2023-02-10
      · 1210d
    

Venture Capital Market Cycles: Historical Patterns and Current Parallels

Tomasz Tunguz reflects on a 2001 New York Times article about the post-dot-com bubble venture capital contraction, drawing parallels to the 2023 market downturn. The analysis demonstrates that cyclical slowdowns in VC investment, IPO markets, and portfolio performance are natural market corrections that precede eventual recovery.

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Metrics in this report

Capital Concentration in Bubble Years

70%

median

share of two-decade high-tech VC invested in 1999-2000

Internet-Specific Venture Fund Returns

-27.7%

mean

12-month period ending June 30, 2001

Venture Capital Fund Returns

-18.2%

mean

12-month period ending June 30, 2001

Venture-Backed IPO Filings

29count

year-to-date

2001 during post-bubble contraction

Venture-Backed IPO Filings

252count

annual

2000 during bubble peak