Bob Ackerman, founder and managing director of venture firm AllegisCyber, said: “There is a tremendous amount of capital sitting on the sidelines. As visibility and confidence build, that capital will return to the market to stabilize and slowly increase valuations. The strongest companies with the best prospects will be the first beneficiaries."
Alex Doll, managing general partner at Ten Eleven Ventures, said: “The short answer is yes: the elevated market cycle we have just been through is repeatable and inevitable. In 2020-21 and the years leading up to it, significant technological advancement occurred, spurred by digital transformation, continued cloud adoption, and a work-from-anywhere revolution. However, as with periods of technology transformation before it, market participants overestimated the speed and degree to which the surrounding innovation would overtake incumbents and thus overallocated capital.”
Eric Tarczynski, managing partner at Contrary Capital, said: "Raising on a billion-dollar valuation with $1 million (or less) of revenue like we saw at the peak in 2021 won't happen for another decade or two. But it'll happen again—everything is cyclical, and FOMO will kick-in once more."
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