TLDR:
- Venture capital exits hit lowest levels since the pandemic and 2008 market crash in 2023
- Total M&A market dropped 15% to $3.2 trillion, lowest in a decade
In 2023, attorneys saw venture capital exits at their lowest levels since the pandemic and 2008 market crash. The total M&A market dropped 15% to $3.2 trillion last year, the lowest level in a decade. Private equity exits were down 44% in value and 22% in volume. Factors contributing to this downturn include high interest rates, macroeconomic uncertainty, rising regulatory scrutiny, and new political pressures. J. Jeffrey Brown from Faegre Drinker Biddle & Reath LLP stated that a better environment, including lower interest rates and a stronger initial public offering market, is needed for a rebound in venture capital exits.
Barnes & Thornburg LLP partner Joshua Hollingsworth is cautiously optimistic about the future of venture capital exits, expecting a potential rebound in 2024. Despite challenges, Indiana has strong private companies that are venture-funded and poised for successful exits when the market improves. Regulatory pressures, including increased scrutiny on M&A activity, are also impacting the landscape. The report suggests that adaptations may be needed to navigate potentially tricky deals and regulatory challenges.
