The VC world has been overcrowded over the past years. Investors of all sorts have joined the party in search of companies with promising high growth rates, reports the FT. In particular, “Much of that investment poured in last year, as the valuations of private start-ups were hitting a peak.” But things are changing now. “If those bets sour, it could lead to a retreat by many of the newcomers drawn to venture to invest. And that, in turn, could deliver a shock to a tech start-up world that has grown used to ever-increasing amounts of capital.”

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