Zymergen Inc. founder Joshua Hoffman didn’t need to raise $400 million earlier this month from SoftBank. His five-year-old synthetic biology startup was surpassing growth targets, he said, and paying bills on time. He had a different reason for raising a monster funding round: preparation for a looming recession.
“We wanted to have some fat on our bones for sure,” Hoffman said. The venture capital industry is flush with cash now, but the startup is worried the good times may not last. “The time to raise money is when people are giving it to you,” he said.