Conclusion | State of the VC Industry

conclusion

The industry will find its new normal The industry will find its new normal Uncertainty reigned in 2023, but there were few surprises. Activity continued to drop, but never approached crisis.

conclusions

We think it’s likely that 2024 will mirror 2023 in many respects – we are living in highly uncertain and volatile times, and the choppiness in the venture market will reflect that.

Investors and founders will continue to settle into a post-peak, new version of normal.

What we’re watching in 2024…

To what extent startups will fail to raise capital and/or cease operations.
Whether private valuations across stages have stabilized or whether there will be more broad-based corrections.
Whether average fund sizes will decrease (and opportunity funds become less common) given the lower valuation and slower financing environment.
Whether sectors like blockchain and fintech will emerge from being out of favor.
How AI will continue to present opportunities for companies, sectors, and investors.
Whether the IPO window will open on the heels of Reddit’s anticipated IPO this spring.
Whether the anti-trust climate will persist, making M&A exits for highly valued private companies challenging.
The impact a rise in interest rates could have during the second half of 2024.
The impact of the U.S. presidential election in Q4.