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'Zombie' VCs may arise globally, Indonesia no exception
Global venture capital (VC) fundraising tumbled by a double-digit percentage in 2022, and some insiders see the next few years as the night of the living dead, where zombie VC firms would arise.
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Global VC fundraising drops by 11.4 percent to US$252.6 billion in 2022. Only 1,381 funds were launched during the year, far less than the prior year’s 2,495, according to Pitchbook’s annual Global Private Market Fundraising Report. (Unsplash/-)
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aced with macroeconomic headwinds, global venture capital (VC) fundraising has tumbled by a double-digit percentage in 2022, and some insiders see the next few years as the night of the living dead, where "zombie VC firms" would arise.
The term, zombie VC, has been used to describe VC firms that fail to prosper and are only there to manage their existing portfolios. Incapable of raising more funds, they might languish in the tech space for years or even decades, given the long-term nature of VC investment.
“That number could be as high as 50 percent of VCs in the next few years,” said Maelle Gavet, CEO of a global entrepreneur network Techstars, as reported by CNBC.
Indonesia, despite its relatively strong macroeconomic standing, is not deemed immune to this phenomenon, as it has become harder to raise funds in the country.
One of Indonesia’s biggest VC firms, East Ventures, makes no secret of the tougher fundraising environment, despite raising US$550 million for early stage and growth stage deals in the first half of 2022.
Read also: East Ventures raises $550m to fund Indonesian start-ups
“Overall, we would say the fundraising was challenging, but that doesn't mean that fundraising cannot be done,” East Ventures cofounder and managing partner Willson Cuaca told The Jakarta Post on Tuesday.
