The venture capital (VC) outlook for 2024 is shaped by various factors and trends that are expected to impact the VC landscape. While the search results provide limited information, here are some insights that emerged:
1. Fundraising Challenges
Founders in the startup ecosystem are expected to face challenges in fundraising for their ventures in 2024. The money may be tight, especially for early-stage and pre-revenue startups, making it difficult to secure funding.
2. Corporate Venture Capital (CVC) Activity
Current CVC investors are expected to remain active in 2024, taking advantage of lower valuations and focusing on themes such as AI, sustainability, and the energy transition. However, the number of new CVCs being launched has decreased, indicating some reticence among companies to establish new CVCs.
3. Shifting VC Landscape
The VC landscape is undergoing changes, with trends that may impact the distribution of VC funding. For example, Silicon Valley’s share of total VC funding in the US has been declining since 2006, with more startup founders opting to establish their companies outside of Silicon Valley. This trend may continue in 2024 as more startup-related work can be done remotely and the high cost of living in Silicon Valley poses challenges.
4. Impact of Economic Conditions
Economic conditions can significantly influence the VC market. It is important to consider the broader economic landscape and its potential impact on VC investments.