When it comes to startups’ flight to quality, have we swung too far in the other direction?

In this episode of the Equity podcast, Jenny Fielding, co-founder and managing partner at Everywhere Ventures, talks about the evolving startup scene in 2024. She highlights a trend towards a "flight to quality," where startups now focus on maintaining efficiency and securing smaller funding rounds instead of chasing large sums at inflated valuations. Fielding points out a split in the market: while elite startups are still landing significant investments, many mid-tier companies are struggling to attract capital, resulting in more shutdowns. Smaller venture capital firms like Everywhere Ventures are finding it tough to compete with their larger counterparts, yet they succeed by utilizing their networks of founders and providing hands-on support. Fielding also foresees an ongoing "great VC resignation," as numerous venture capitalists exit the field due to unsustainable business practices, the demanding nature of the role, and difficulties in partnerships.