Venture firms have continued to raise record funds in 2022, even as startups received far less money than they did last year. That poses the question: What will happen with all that dry powder in 2023?

Dry powder is as high as $1.3 trillion globally for private equity and $580 billion globally for VC, according to one estimate from James Ephrati of Lightspeed Venture Partners. The dry powder in 2021 was roughly the same, he said, but investors were putting money to work at a record pace. READ MORE