As we bid farewell to 2023, a year marked by extreme disparities in the world of venture capital, the focus now shifts to the outlook for 2024. More than 40 venture capital investors have shared their insights, offering a diverse range of predictions and expectations for the upcoming year.
Key Takeaway
The predictions for 2024 from venture capital investors reflect a cautious yet opportunistic approach, with a focus on capital efficiency, selective deployment, and the evolving landscape of startup valuations.
The Current Economic Climate’s Impact
- Matt Cohen, founder and managing partner, Ripple Ventures: Emphasizes a selective approach, with a focus on capital efficiency and extended runway metrics for non-AI companies.
- George Easley, principal, Outsiders Fund: Finds the current climate attractive and anticipates an acceleration in deployment for 2024.
- Don Butler, managing director, Thomvest Ventures: Highlights a balanced investment approach between new and portfolio companies, with a shift towards increased focus on new investments for the upcoming year.
- Larry Aschebrook, managing partner, G Squared: Sees increasing opportunity in secondary markets due to liquidity pressure, with a specific focus on secondaries for the year ahead.
- Lisa Wu, partner, Norwest Venture Partners: Expresses a keen interest in seed and Series A opportunities, especially in the current economic climate.
Evolution of Startup Valuations
- Jai Das, president, partner and co-founder, Sapphire Ventures: Foresees an increase in recapitalizations and down-rounds in 2024, with startups facing challenges in raising Series A funding.
- Pradeep Tagare, head of investments, National Grid Partners: Expects certain sectors, such as climate tech, to continue experiencing valuation premiums across all stages.
- Simon Wu, partner, Cathay Innovation: Anticipates a widening gap between AI-related deals and other sectors, with a more pronounced disparity in 2024. Emphasizes the impact of rapid AI innovation on fundraising for companies.
