Venture capital: painful turning point: venture capital funds are threatened with high write-downs

Frankfurt Venture capital (VC) funds have been spoiled with success for many years. But now investors who earn their money by investing in young technology companies are threatened with a painful turning point. After the valuations of start-ups had risen for years, the current crisis on the markets is likely to force significant write-downs.

Venture capital funds in particular, which invested a lot of capital in tech-heavy start-ups in the boom years at the beginning of the decade, are facing corrections. The mood in the industry is bad, and the recent banking crisis in the USA is also contributing to this, especially the collapse of the Silicon Valley Bank (SVB), which specializes in tech financing.