- Sheila, welcome.
How is the current market environment impacting
the ability to raise new funds?
- Well, thank you for talking with me today.
I think the current market environment
is a fascinating one to behold.
We have seen funding rates drop off pretty dramatically
over the last several quarters,
but in particular,
growth is suffering the most,
with only about 8% of funding in the first quarter
going to growth,
and about 67% going to early stage.
So it's a bit of a bifurcated market
when it comes to where funds are going
and how we can all raise funds to keep funding innovation.
- What is the outlook on venture capital
in the short and medium term?
- Well, I think as you look at crises in the past
and you look at the vintages that came out of those years,
those were some of the best years for venture capital.
And I think many of the investors, large institutions,
pension funds, sovereign wealth funds,
that have a long history
and have invested over many, many years in the space,
are looking at the next four to five years
as potentially some of the best vintages
for venture and growth investing,
where great companies will be founded
in areas like generative AI, the Metaverse,
Web 3.0, and they want to be part of that.
- So that's AI.
But I know climate tech is something that is an area
of expertise for you.
Could you just tell me a little bit more
about the opportunities there?
- Sure.
Well, I think climate tech
is such a fascinating space.
It clearly is one that has countered the trend
on fundraising.
Over the past several quarters, as venture suffered,
climate tech has been accelerating in terms of investors,
and I think it's because of so many forces
that are encouraging investment in maybe the 2.0 of 3.0
of how we address the challenges around climate.
The technology that can help companies
answer the regulatory challenges
of showing that they're addressing the situation.
The risk analytics,
and the technology again,
and the AI that can help us look at challenges
within climate,
carbon sequestration, and agricultural technology.
There is so much to be unraveled
and so it's a really exciting time to invest in climate,
alongside innovation and technology.
- Sheila, thank you so much.
- Thanks for having me.