Investors pulling back in new macro environment?

professional profile

July 10, 2022

by a professional from Cornell University in Boulder, CO, USA

Just curious if anyone has seen material changes in fundraising as a result of the macroeconomic picture, such as it being harder to raise funds or even seeing investors pull back on verbal committments?

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commentor profile
Reply by an intermediary
from Harvard University in Dallas, TX, USA
Definitely seeing more caution among PEG, independent sponsors, and creditors, especially commercial banks. CBs are reducing the amount of leverage they allow or passing on deals altogether. Financial buyers are being more selective and focusing on downside scenarios. Maybe an opportunity for those with a longer time frame or a willingness to dig in harder to get a decent price on an opportunity.
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Reply by a searcher
from Southern Methodist University in Dallas, TX, USA
I am currently involved in the FinTech lending space, and we are seeing capital withdrawals across the lower credit tiers in an early flight to quality. I think we will see the same in the SMB space with a tightening of structure and lowering risk profiles as a way to deploy less capital.
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