“The first thing VCs have done is to stop new investments and spend the last two to three months just trying to figure out what is happening to existing portfolios, how they are going to help them restructure in advance,” said Wong Poh Kam, a business professor from National University of Singapore.
For now, the party is over in the tech start-up scene. “Our internal research shows a steep drop in VC funding for the first quarter of this year,” said James Tan, managing partner of Singapore-based VC, Quest Ventures.
“If the current trends hold, the line continues flat for the next two quarters before a mild recovery takes place at the end of the year, and accelerates as the new year begins.”
Quest Venture’s Tan agreed: “We think venture capital firms that have dry powder today stand to invest in the greatest game-changing companies of tomorrow.”