Venture Capital’s Post

The venture capital industry in 2023: a rollercoaster ride of uncertainty, challenges, and AI frenzy. From dodging economic downturns to embracing promising startups, it's been quite the journey! Here's to hoping for more stability and growth in 2024!

I've been closely observing the global VC trends in 2024. In the first quarter alone, global VC funding grew by 16%, reaching $89 billion across 4,600 deals. In the US, funding increased 72%, largely due to substantial investments in technology, AI, energy, and healthcare. This kind of growth highlights the immense potential and the shifting focus towards these critical sectors. On the other hand, Europe experienced a 28% decline, primarily due to macroeconomic uncertainties and the UK's technical recession. Meanwhile, China saw a 13% increase, with the automotive and AI sectors leading the way. One interesting trend is the growth in average deal sizes across all funding stages. Early-stage deals surged by 43%, with seed and late-stage deals growing by 17% and 21%, respectively. As expected, Generative AI continues to dominate the VC scene. While foundation and large language models have attracted significant funding, there is robust growth in other AI categories as well. Notably, non-tech CVCs like LG Technology Ventures, CVS Health Ventures, and Capital One Ventures are leading the charge, partnering with start-ups to make generative AI more accessible to their customers. As someone deeply invested in the venture capital space, these trends are both exciting and challenging. They underscore the importance of staying adaptable and forward-thinking. For me, it’s not just about the numbers; it’s about understanding the underlying shifts and positioning ourselves to capitalize on these opportunities. How do you see the future of venture capital evolving? 

The landscape of global venture capital funding in the final months of 2023 presented a compelling narrative of resilience and strategic focus amidst broader economic headwinds. As we navigated through a period marked by a 15% quarter-over-quarter decline in VC investments, reaching levels not seen since early 2020, the nuanced shifts across regions and sectors illuminated areas of burgeoning opportunity and investor confidence. Despite the overall downturn, Europe stood out with a 7% increase in funding, powered by a burgeoning interest in AI and fintech startups. This contrasted with the declines observed in the US and China, underscoring the diverse impacts of economic uncertainties across global markets. Yet, it was the strategic bets in generative AI and semiconductor startups that captured the imagination, particularly in the US and China respectively, showcasing the sectors' resilience and the investors' belief in their transformative potential. The investment landscape also revealed a fascinating dynamism across different funding stages. While early and late-stage deals faced contractions, seed-stage funding emerged as a beacon of growth, expanding by 17%. This growth underscores the vibrant entrepreneurial spirit and the lower barriers to entry in nascent fields like generative AI, hinting at a fertile ground for innovation and new ventures. Corporate Venture Capital (CVC) activities also offered a glimpse into strategic corporate interests, maintaining a steady 20% share of all funding in 2023. The uptick in both CVC-funded deals and the number of CVC investors in the fourth quarter, particularly those centered around AI, signals a targeted investment approach amid the funding slowdown. The standout narrative, however, belongs to generative AI startups, which not only defied the overall declining trend but also saw an upswing in investments. This sector's robust performance amidst investor hesitance is a testament to the technology's perceived value and its potential to redefine industry landscapes. As we reflect on these trends, it becomes evident that the late 2023 venture capital funding landscape, with all its complexities and challenges, also presented a canvas of opportunity. It highlighted strategic areas of growth and innovation, particularly in emerging technologies, that continue to draw investor interest and resources. This period serves as a reminder of the importance of strategic focus and adaptability in navigating economic uncertainties, while also underscoring the enduring allure of innovation in driving forward-looking investments. #VentureCapital #InvestmentTrends #GenerativeAI #Innovation #StartupEcosystem

🚀 The Garage Syndicate Unveils 2024 Investment Forecast 📈 What Lies Ahead? 🔸 In the upcoming year, the venture investment market is poised to become even narrower and more sophisticated. Investors will strategically reallocate a substantial portion of their capital into broader and more liquid markets. This shift is anticipated to intensify competition among startups, paving the way for the emergence of higher-quality projects and cutting-edge technologies. 🔸 Across major economies, including the United States, a notably subdued growth is anticipated in 2024. The tightening of financial conditions is expected to further deteriorate the quality of assets, posing challenges for investors. 🔸 Global uncertainty will reach new heights in 2024, driven by elections in forty countries. The outcome of these elections will inject an element of unpredictability into markets, keeping investors on their toes. 🔸 Major artificial intelligence (AI) companies are set to diversify into product verticals, consolidating startups that have demonstrated noteworthy achievements. 🔸 A pivotal growth driver could be the continually rising number of family offices, having multiplied tenfold since 2008. The critical question here is the willingness of new managers to invest in the venture market or opt for more conventional avenues like public markets. 🔸 The transformative force in the venture industry will be the advancement of data-driven methods and automation, signaling a paradigm shift in how investments are approached and managed. Stay tuned for more updates as we navigate the dynamic world of venture investments together! #InvestmentForecast #VentureOutlook2024 #TheGarageSyndicate #AI

💡 2023/2024 funding - looking back, and what's ahead? 💡 💸 Seedrs recently released their 2024 sector report. Some key highlights from the report are: 💪🏻 Resilience: Despite a tough environment in 2023, Seedrs supported 266 rounds and raising over £353m. 💰 The Continued Growth of Fintechs: The Finance & Payments sector was the most popular on Seedrs in 2023, with 42 campaigns raising a total of £137.2m, showing a continued investor interest and growth potential in this sector. 🤝🏻 Significant Focus on B2B and B2B/B2C Mix: In 2023, 72% of businesses launching their first Seedrs round were either B2B or a mix of B2B and B2C. 🌍 ClimateTech and AI Investment Highlights: Investment trends show a strong interest in ClimateTech, which accounted for 27% of all venture capital in Europe in 2023, and in AI, with the UK AI industry alone valued at over $21 billion. 👀 Prospects for 2024: The report anticipates a likely rebound in VC fundraising and a continued evolution in investment strategies, particularly in underfunded sectors like ClimateTech hardware and innovative AI applications. If you're an investor, founder or just curious at what the start-up space is looking like - I'd highly recommend taking a look at their report which can be found here:

𝗗𝗶𝗱 𝘆𝗼𝘂 𝗸𝗻𝗼𝘄 𝘁𝗵𝗮𝘁 𝗴𝗹𝗼𝗯𝗮𝗹 𝗩𝗖 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝐬 𝗷𝘂𝘀𝘁 𝗵𝗶𝘁 𝗮 𝗳𝗶𝘃𝗲-𝗾𝘂𝗮𝗿𝘁𝗲𝗿 𝗵𝗶𝗴𝗵? Despite an overall sluggish economic environment, venture capital investment has surged, reaching $𝟵𝟰.𝟯 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 in Q2'24 alone! The numbers are staggering, with $𝟱𝟱.𝟲 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 of that coming from the US, while 𝗘𝘂𝗿𝗼𝗽𝗲 and 𝗔𝘀𝗶𝗮 attracted $𝟭𝟳.𝟴 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 and $𝟭𝟳.𝟰 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 respectively. But that's not all — deals worth $𝟭 𝗯𝗶𝗹𝗹𝗶𝗼𝗻+ were seen in every region, signaling strong momentum. 𝗞𝗲𝘆 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 𝗤𝟮'𝟮𝟰: 𝟭. 𝗠𝗮𝘀𝘀𝗶𝘃𝗲 𝗩𝗖 𝗗𝗲𝗮𝗹𝘀: • CoreWeave raised a whopping $6 billion in AI-focused funding in the US. • Flipkart saw a $1.96 billion raise in India, while Lazada raised $1 billion in Singapore. • UK-based Wayve raised $1 billion, and Abound followed with $999.6 million in funding. 𝟮. 𝗔𝗜 𝗹𝗲𝗮𝗱𝘀 𝘁𝗵𝗲 𝗰𝗵𝗮𝗿𝗴𝗲: • Startups in AI like CoreWeave and Mistral AI grabbed massive funding, driving investor interest in this space. • Expect big bets in AI to continue, especially with LLM (Large Language Model) development scaling fast. 𝟯. 𝗘𝗻𝗲𝗿𝗴𝘆 & 𝗖𝗹𝗲𝗮𝗻𝘁𝗲𝗰𝗵 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻: • Neta Auto raised $693.3 million in China for the largest cleantech deal, while Nexamp in the US raised $520 million in the decarbonization space. • In Europe, Highview Power's long-duration energy storage raised $381 million. 𝟰. 𝗗𝗲𝗳𝗲𝗻𝘀𝗲𝘁𝗲𝗰𝗵 𝗼𝗻 𝘁𝗵𝗲 𝗿𝗶𝘀𝗲: • Investment in defensetech is also gaining traction, with smaller companies scaling to compete with industry incumbents. • Expect to see larger consolidation in the next few years, especially in Australia, India, and the UK. 𝟱. 𝗖𝘆𝗯𝗲𝗿𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗴𝗿𝗼𝘄𝘁𝗵 𝗱𝗿𝗶𝘃𝗲𝗻 𝗯𝘆 𝗔𝗜: • Cybersecurity companies are well-positioned to capitalize on AI's rapid growth, especially as regulatory frameworks like Europe's Digital Operations Resilience Act come into effect. 𝗟𝗼𝗼𝗸𝗶𝗻𝗴 𝗮𝗵𝗲𝗮𝗱 𝘁𝗼 𝗤𝟯'𝟮𝟰: • The market is expected to remain stable, with further $𝟭𝟬𝟬 𝗺𝗶𝗹𝗹𝗶𝗼𝗻+ 𝗺𝗲𝗴𝗮-𝗱𝗲𝗮𝗹𝘀 and a focus on startups delivering unique AI value propositions. • Cleantech remains critical as the global shift toward sustainable energy continues. • IPO activity may pick up slightly in Q3, but a major resurgence isn't expected until Q1'25 or Q2'25. 𝗩𝗖 𝗳𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 remains soft at $𝟴𝟬.𝟱 𝗯𝗶𝗹𝗹𝗶𝗼𝗻, but as AI and exit activities rise, the global VC landscape is looking towards a transformative future. 𝗪𝗵𝗮𝘁 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸? Which of the above sectors will continue to dominate and which will remain sluggish, also with the interest rate cuts coming this month. Let’s discuss in the comments! Post Inspiration: KPMG Venture Pulse Q2'2024

🚀 Venture Pulse Q2 2024 is Here! 🌐 Hi to all you #Founder #Entrepreneurs out there who are looking to #raise for your #startup or #scaleup. Check this report out! KPMG Private Enterprise has just dropped the latest edition of their Venture Pulse report, and it's packed with juicy insights on the global VC scene. 📊 📈 Key Insights for UK #Founders: - Global Surge in VC Investment: We’re talking a whopping $94.3 billion in Q2’24! Big players like CoreWeave ($8.6 billion), xAI ($6 billion), Lazada ($1.96 billion), and Juul Labs ($1.2 billion) are leading the charge. - #AI is on Fire: AI is where it's at, folks! With UK-based Wayve raising $1 billion, the AI innovation train isn’t slowing down anytime soon. - UK IPO Market is Heating Up: Raspberry Pi Foundation 's IPO success is just the start. More UK startups could be hitting the public markets soon! - Emerging Trends in the UK: #Cleantech and #alternativeenergy are booming. Highview Power’s $381 million raise is a testament to that. Plus, the UK’s AI Act is setting the stage for big moves in AI and #defencetech. 💡 Why This Matters for UK Entrepreneurs: - Funding Galore: With VC investments rebounding, there are more opportunities than ever for UK startups to secure that big funding round. - Smart Investments: Focusing on AI and cleantech? You’re in the right place at the right time. - Market Buzz: Successful IPOs and mega-deals mean there’s a positive vibe in the air. It’s a great time to be in the UK startup scene. For a deep dive into these insights and more, check out the full KPMG Private Enterprise report: https://lnkd.in/gJSqsdrt Thanks to you all for sharing such valuable insights and data Conor Moore, Francois Chadwick, and Lindsay Hull #VentureCapital #AI #Cleantech #UKStartups #IPOMarket #KPMGPrivateEnterprise #InvestmentTrends #VCFunding

This report informs Venture Capitalists of funding trends and risks in AI sectors, vital for sound investment decisions amid valuation concerns and growth prospects. Crunchbase has recently released data on how Global venture capital funding performed in February 2024. 🔎 Here are the key highlights from the report: 1️⃣ Global venture capital funding touched $21.5 billion, maintaining a steady monthly pace and showing a slight increase from February 2023. 2️⃣ While technology remains at the forefront of investments, AI companies witnessed a larger share of startup investment, attracting more than a fifth of all venture funding, aggregating $4.7 billion. 3️⃣ Despite economic uncertainties, mega-rounds continue to dominate the investment sector. A notable example being, the $1.5 billion strategic investment in Epic Games from Disney. 4️⃣ Amidst growing concerns, AI sector continues to thrive and is seen by many as the next big thing. The sector is expected to expand significantly as companies anticipate productivity gains from AI. After reading the report, it's clear that VCs are still hopeful about AI, but are worried that the valuation might be too high. Experts predict a potential twofold to threefold increase in software spending over the next five to seven years, driven by AI-led productivity gains and GDP growth. As we go further into the year, one truly wonders if this trend will continue in the coming months or not. What’s your take on the report? Comment below. ⬇️ #VentureCapital #AI #FundingTrends #InvestmentInsights #TechnologyGrowth

Global VC Deal Activity 1H 2024 Snapshot The venture funding slowdown has persisted for two years, but a surge in mega-rounds and AI funding marked a stronger Q2. According to EY, the lingering effects of previous VC rounds continue to dampen investor interest in existing startups, especially those not engaged in AI. This will likely lead to some consolidation, with a growing divide between companies leveraging AI and those that do not. The impact of this trend is expected to become more apparent in the latter half of the year. Key points: - AI Dominance: AI continues to inflate the apparent health of the venture industry. Without AI-related activity, VC investment would have been flat or down quarter over quarter. EY predicts AI will remain a key driver attracting investors to the VC ecosystem. However, potential government or regulatory actions could temper this enthusiasm. Despite this, more companies in the AI space are expected to emerge. - Deal Count Decline: The number of global VC deals has fallen to its lowest level in nearly ten years. Overall deal count dropped as investors became more selective in this era of reduced activity. - Regional Trends: In 1H 2024, global VC deal value decreased by 6% compared to 1H 2023, and deal count declined by 26%. North America and Europe increased their share of global VC deal amounts to 75%, while Asia's share fell by 7 percentage points to 22%. Q2 2024 was the worst quarter for Asia since 2018. In the US, 29% of deals in 1H 2024 were related to AI investments, a 2.2x increase from 2021. Companies with an AI focus are attracting investor interest, while others must prepare to navigate a challenging fundraising environment. Source: https://lnkd.in/efR93kRm https://lnkd.in/eGfqk_By #VentureCapital #Fundraising #VCDealActivity

Global VC Deal Activity 1H 2024 Snapshot The venture funding slowdown has persisted for two years, but a surge in mega-rounds and AI funding marked a stronger Q2. According to EY, the lingering effects of previous VC rounds continue to dampen investor interest in existing startups, especially those not engaged in AI. This will likely lead to some consolidation, with a growing divide between companies leveraging AI and those that do not. The impact of this trend is expected to become more apparent in the latter half of the year. Key points: - AI Dominance: AI continues to inflate the apparent health of the venture industry. Without AI-related activity, VC investment would have been flat or down quarter over quarter. EY predicts AI will remain a key driver attracting investors to the VC ecosystem. However, potential government or regulatory actions could temper this enthusiasm. Despite this, more companies in the AI space are expected to emerge. - Deal Count Decline: The number of global VC deals has fallen to its lowest level in nearly ten years. Overall deal count dropped as investors became more selective in this era of reduced activity. - Regional Trends: In 1H 2024, global VC deal value decreased by 6% compared to 1H 2023, and deal count declined by 26%. North America and Europe increased their share of global VC deal amounts to 75%, while Asia's share fell by 7 percentage points to 22%. Q2 2024 was the worst quarter for Asia since 2018. In the US, 29% of deals in 1H 2024 were related to AI investments, a 2.2x increase from 2021. Companies with an AI focus are attracting investor interest, while others must prepare to navigate a challenging fundraising environment. Source: https://lnkd.in/efR93kRm https://lnkd.in/eGfqk_By Growth Vision Pro #VentureCapital #Fundraising #VCDealActivity