Last December, the outlook for venture capital felt grim. Compared to the flush days of 2021, startups were looking at a much drier funding landscape, as interest rate hikes came to present a sobering reality.

The situation was spelled out by Wesley Chan, co-founder and managing partner at FPV Ventures, who told Inc last December that limited partners, such as pension funds and university endowments that invest in VC funds, were spooked by the macro conditions: "Most LPs are saying, 'Why would I put more money into venture when I can get risk-free returns by buying treasuries at almost five and a half percent?'" READ MORE