This is Part 1 of a two-part examination of the state of the startup capital market during the past two years. Part 2 will explore the transition to an Equity Buyer’s Market in 2022. 2021 was an unusual year. Investors participated in record returns, capital raises, valuations, and founder-friendly deals, the most “exuberant” year for startup financing in two decades. What are the lessons we can learn about investing during and after startup capital market bubbles?