Venture capitalists (VCs) are ending 2022 with plenty of capital, but they are in no rush to deploy it. With so many startups right-sizing their operations and adjusting their fundraising expectations, investors are now looking forward to quality opportunities in 2023.

“I will say this is a very good time to step up our due diligence, start seriously looking at some of the deals and be ready to deploy in the first half of the year,” said Chik Wai Chiew, chief executive at private equity and VC firm Heritas Capital. Heritas’ Chik, however, believes the startup space may yet take some hits from the macroeconomic slowdown next year. This would be less of a shock to the ecosystem, but will still be as painful.