The dry powder fallacy: why there is 50% less startup capital than we think

If there were any doubt startups would experience a tumultuous 2023, the SVB crisis quashed it. Even though we are on the other side of it, many questions remain. The majority of which, though, can summarize as, “What capital is available?”

To answer that, we must look at the whole ecosystem that creates liquidity.

Supply[startup capital] = VC + NTI + VD

We should consider these components individually and together. As both VD and NTI are somewhat…