“To the extent that you are in the middle of the stream in collecting capital, close it as soon as possible. Repeat, close as soon as possible in the middle of the stream,” gambling. “And be really reasonable in terms of the deployment of your capital.”
Managing partner Charles Hudson told Wired that his company Venture, the precursor, has shares in several startups E -commerce, which can be “strongly affecting” Trump’s tariff.
But, as Hudson adds, he does not know the best way to strategy around the tariffs, because “the logic of their time, scale and scope seems to find only in the head of our president, and the tariffs are not discussed as part of the normal process of creating a policy that would give us greater clarity.”
The precursor, which invests in startups at an early stage, simply raised over $ 65 million for his fifth fund. Hudson said recent interview With information that he currently plans to invest in three years, and not for a standard two years. We hope that an additional time horizon will give circumscribed partners who provide funds to Venture Capital to see the returns from their investment.
Hudson also predicted that the sale of shares at private startups on the secondary market is the overwhelming majority of liquidity that investors see in the next five years, not a return on acquisitions or initial public offers.
Other VC agree that the secondary market will probably heat up. “VCS was once the best hodlers, sticking to an expensive life, riding to the start that he invested in IPO’s,” says Drummond. “But over the past 10 years they had to become much more disciplined sellers and come up with how to provide liquidity before.” It was true for some time, because the growing interest rates and VC are more cautious, but it is “particularly true”, he says.
Analysts from Pitchbook, database of statistics regarding increased risk capital and private equity markets, warn that tariffs can affect the cooling on international investments, noting that startups celebrated due to the “global first” strategies can now be perceived as susceptible.
In the first quarter of this year, before the official Trump’s tariff announcements, the smaller share of American capital has already flowed into VC transactions in Europe and China than in recent periods. About 47 percent of European offers included US funds, which is four percentage points from the last quarter of 2024.
“For decades, VC has flourished in more and more without borders, but another week of tariff wars causes a serious rating,” reporter Pitchbook Leah Hodgson wrote at the beginning of this month.
Bad news for IPO
Before Trump took office, investors hoped that the IPO technology market would continue to reflect this year after falling in the decline in 2022. The market showed signs of regaining in 2024.: According to last year there were 176 initial public offers, compared to 127 in 2023 and 90 in 2022. data collected by EY consulting company.
Accounting company KPMG recorded in report It was published at the beginning of this month that “persistent market uncertainty” led to many startups to delay their closest public debuts, including the quarter. Service flare of mobile banking, stubhub ticket giant and the Swedish company “Buy Now, pay later” clarna pause in planned public offers. The AI Coreweave Infrastructure company was protruding – it began to trade shares at the end of March.