<ul><li>The funding stage dynamics are expected to gradually normalize by 2026.</li><li>Early-stage investment will likely remain strong, but those companies will eventually need healthy late-stage markets to fulfill their potential.</li><li>Public equity markets staying receptive and experiencing increased IPO readiness efforts may lead to a virtuous cycle of resumed exits, increased LP distributions, renewed LP commitments, and more capital for new VC funds across all stages.</li><li>However, if exits stall again, the late-stage crunch could persist, risking down-rounds, acquisitions, or shutdowns for many mature startups.</li></ul>

Betting Early, Holding Late: VC’s New Playbook

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