Party rounds fall out of favor with VC downturn

Party rounds have been a controversial topic in the venture industry, but the economic downturn will likely limit their use.  

In the last decade, the average number of investors per round had been increasing steadily, reaching a peak in 2021 at 5.84 per deal, according to PitchBook data. At the same time, party rounds—deals in which smaller amounts of capital are raised from multiple investors in the double digits with no lead—also grew in number. READ MORE