Dry powder is committed but not-yet-deployed capital sitting in venture capital funds, representing the capacity for future investment in the system. The metric applies across private equity funds, hedge funds, and similar vehicles, calculated as the difference between total committed capital across active funds and the capital those funds have already invested. It is one of the most-watched venture-industry metrics because it predicts future investment activity and overall market capacity.
The metric and its drivers: industry analysts (PitchBook, CB Insights, Carta, Preqin) regularly publish dry-powder figures aggregated across the venture industry. As of Q1 2026, US venture dry powder stands at approximately $278.5 billion (Pit...