#147 Navigating the VC Landscape in 2024
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Navigating VC Landscape in 2024 - What’s Going On?
In the Q1’24, the US VC stayed slow but is maybe finding a bottom?! Key stats:
$36.6 billion invested across 3,925 deals, remaining steady compared to previous years
$300 billion in dry powder available
Defensive investment climate, where investors are focusing on existing portfolios rather than new ventures
Insider-led rounds are prevalent, while first-time financings are at multiyear lows.
While things remain slow in VC, there will always be outliers that buck the trend:
Where does VC go from here?
DPI: For LPs, distributions are what matter. Pitchbook-NVCA data shows how low those realized returns have dropped during the market slowdown.
New Commits: In Q1, just $9.8 billion of new fund commitments were closed, or rather, 5.0% of the 2022 annual high.
“With little capital to recycle into the market, LPs have come under further pressure in navigating their exposure to venture.”
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