State of the Venture Capital Industry

Indeed, AI, showed up often and everywhere last year. It was a key driver of excitement, innovation, early-stage dealmaking, and valuations – and thus was top of mind for founders, investors, allocators, researchers, journalists, and regulators. AI is no longer a sector per se, but a platform shift that defines the current era of technology.

AI was not the only source of optimism in 2024. Crypto experienced a resurgence last year, venture secondaries transactions reached a record volume, the pipeline of pre-IPO companies continued to expand, and long-term performance of the asset class continued to support the case for investing in top quartile venture capital funds.

The trends that lagged in 2024 were felt acutely across the industry. The fundraising environment remained challenging, with the number of funds raised marking a ten-year low, and exits disappointed for yet another year. Total annual exit value remained below pre-pandemic levels as investors waited and hoped for signs of improvement.

We unpack more trends and data from 2024 in the pages ahead, and conclude by highlighting the reasons for sustained optimism as we move farther into 2025.