In the first three months of 2022, nontraditional investors participated in $52.5 billion worth of deal value, less than in any quarter of last year. Private equity firms as well as asset managers like hedge funds showed the highest pullback from VC, as measured by their participation rate in VC deals by value. ‘I think all the crossover hedge funds basically disappeared from the private markets,’ said Mitchell Green, founding partner at Lead Edge Capital, a growth equity firm. ‘We would expect NTIs to become more cautious broadly, which would translate into slower deal activity than 2021,’ said Kyle Stanford, a senior analyst at PitchBook. CVC firms, which invest in venture for strategic reasons, should retreat less than other investor types. . . .