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Venture Capital Startups Markets

U.S. Bull Market Reaches Milestone

U.S. stocks entered the longest bull market in history by some measures on Wednesday, prompting many to ask how much longer the run-up can last. It’s worth pausing to ask the same question about the private tech markets, which have benefited from the climb in public markets and continue to defy gravity.

Private fundraising rounds of $100 million or more reached a record pace this summer, fueling increases in valuations. Among early-stage startups, seed round valuations have gone up as well.

One question currently facing venture capital investors is just how much to bet on a continued rise in prices. A divide appears to be emerging in how they structure their new funds. A few firms have raised mega-funds of more than $1 billion, following in the footsteps of SoftBank’s $100 billion Vision Fund. Meanwhile, Benchmark Capital, which was burned in the dot-com crash, has notably resisted the trend of raising a larger fund, according to the Wall Street Journal. Don’t be surprised to see other top firms take a more limited approach as well.

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