Venture capital firms' cash piles continued to grow, even as dry powder fell across other private investment strategies. Global venture firms were sitting on $585.5 billion of capital raised but not allocated as of the end of Q3 2022, according to PitchBook data. VC is the only private investment strategy in which dry powder is on pace to rise from 2021 levels.

One factor allowing global VCs to retain and grow a record stockpile of dry powder is the heavy presence of nontraditional VC investors. This money, which is not captured in the VC dry powder figures, has augmented the capital available to startups and allowed growth of the asset class beyond money available to VC firms.A large portion of the capital invested in venture deals, especially those in the top end of the market, has come from asset managers such as mutual funds, hedge funds and private equity funds, said Kyle Stanford, a senior VC analyst at PitchBook.

Data from the Q3 2022 PitchBook-NVCA Venture Monitor shows that through Q3 2022, the total value of venture deals with Data from the Q3 2022 PitchBook-NVCA Venture Monitor shows that through Q3 2022, the total value of venture deals with participation from nontraditional investors hit $145.1 billion—about 74% of all US VC deals. This group of investors participated in around 92% of mega-sized venture deals in 2021.

To read the complete article, click here.