It’s interesting to see the major trends in software investing and how relatively recent these events are. Altogether, it’s only been about 50 years total for software investing. Yet, humanity today is witnessing an unprecedented explosion of new technologies at an incredible pace and scale.
Software Investing Regimes (very high level):
1. 1970s–80s: Early VC emergence
2. 1990s: Dot-com rise
3. 2000–02: Dot-com bust
4. 2003–07: Rise of SaaS
5. 2008–12: Cloud adoption post-crisis
6. 2013–18: Growth-stage mega-rounds
7. 2019–21: Record capital inflows
8. 2022–Present: Market correction and shifts (interest rates, AI hype)
YC’s Invesment Volume from 2005 to 2020
From backing ~10 startups in 2005 to backing over 1,000+ startups in recent years.
