I have a number of clients around the Series A stage who feel absolutely betrayed by the venture capital market. They complain they did exactly what their investors asked of them and in the absence of new firms coming to the table, the existing folks are sheepishly looking away and whistling, hoping that no one notices them.
The CEOs asking how they can get off the VC train are generally trying to avoid being in that position sometime in the future.
I have no doubt that in many cases it's because they now realize they don't have a venture-scale business. And, in plenty of other cases, it's because trust has been irreparably damaged.
Taking venture capital means permanently living way over the tips of your skis, valuing rapid growth over running a sustainable business. When founders no longer believe they have a safety net, they'll seek to play by different rules and prioritize sustainability over growth.
As Sam Lessin wrote about in his WTF VC deck a short while ago, it feels like the "factory farming of unicorns" strategy has broken. Perhaps temporarily, perhaps for good.
I'm actually super bullish on VC investment, but when the rules change mid-journey, it's overwhelmingly the founders who get screwed. We're going to see the majority of a startup generation go up in flames because of hilariously bad investment decisions and guidance during COVID. I don't fault the CEOs still standing for wondering aloud how they get the heck off the rocket before it explodes.