Venture Capital Investment Exhausts Dry Spell During Pandemic, Initiates Shift Towards Acquisition

The world as we know it has been on a rollercoaster ride in recent times. With the global pandemic shaking the economic building blocks to their core, venture capitalists have found a way to keep the markets bustling. Surprisingly, even against a backdrop of considerable volatility, there is a major shift towards increased activity in venture capital funding. This shift has been accompanied by a new trend: a turn towards acquisitions. Venture capitalists, after a period of prudence and reserve, have not just returned to the investment scene — they are making moves on a larger scale than ever before. The juxtaposition of a global crisis and a surge in venture capital activity raises intriguing possibilities. It illustrates the sector’s resilience and agility, highlighting its crucial role in supporting startups and growth-driven enterprises in bleak times and beyond. Simultaneously, with an increase in venture capitalists’ ‘dry powder’, it appears that acquisitions are rapidly becoming the favored route to the quick liquidity needed to stay afloat in these trying times. It seems the sector is scaling up, in both scope and ambition, despite the pandemic.