Yahoo Finance Video
Crunchbase data reveals that early-stage startup funding plunged 34% year-over-year in November. Lux Capital General Partner Bilal Zuberi joined Yahoo Finance’s Seana Smith at the Barclays Global Technology Conference to discuss implications for venture capital funding. Zuberi stated the last year has been a “downer” for VCs amid scarce liquidity events like IPOs. This forced startups to take on cost-saving strategies through layoffs and operational changes to achieve profitability. However, he sees areas like defense tech, AI, and human productivity enhancement as needed areas of investment, calling them “important for society” and venture returns. Though strategies have shifted from purely top-line growth toward “building real, profitable businesses,” Zuberi argues sectors enriching lives and pushing boundaries still command capital. "A few years ago, start-ups used to be very narrative-driven. They've become very much metrics and operations-driven," Zuberi says. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.