The article discusses how venture capital is affected by the business cycle. During economic upswings, venture capital funds projects with little technological advancement, while in downturns, there is a lack of investment. The traditional venture capital model has changed, leading to stricter investment criteria. The study identifies five stages of the venture capital cycle and explores different venture capital formats to make the cycle counter-cyclical. In 1994, the US had 640 venture capital firms with $45 billion in funds. By combining various venture capital formats, opportunities can be created to invest during economic downturns.