Early-stage startups are finding it harder to raise capital as investors get more selective, but the ecosystem could still be in for a fresh influx of talent, says C managing director Sarah Kunst.

"The good news is that early-stage startups don't have massive office buildings and a ton of burn, so in that sense, it can be easier," Kunst told PitchBook in an interview at the Web Summit tech conference in Lisbon, Portugal. "The hard thing is they also don't have a big institutional board and deep-pocketed investors to keep putting money into their companies.

"Kunst added that seed-stage startups do not normally have the three-year runway of capital that an investor would advise, for example, a startup at the Series B stage to have. But a difficult fundraising environment will not deter new startups from being launched, according to Kunst, who anticipates an influx of talent into the ecosystem.

"I think that there are a lot of opportunities," she said. "There are a lot of brilliant people starting companies—or who will be starting companies in the next few months—who otherwise wouldn't have left their big tech jobs where they were making great money and vesting their equity. But now that equity is worth less, I think more people are going out and starting their own thing."

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