#169 VC Market Update (Q2'24) & Exit Predictions (DPI)
👋 Hi, I’m Doug! Welcome to @TheFundCFO crew! Every Tuesday/[Thursday], we publish VC/CFO insights that matter - highlights from notable VC GPs, LPs, and CFOs/finance pros. Check out our VC Fund Playbooks, Models, Budgets, & Compliance Checklists @ AirstreamAlpha! Love what we’re doing? Consider upgrading to paid for deeper dives on Thursdays (most paid subscribers expense these insights!).
“Do the best you can until you know better. Then when you know better, do better.” -Maya Angelou
Picture of the Day: VC-backed inventory @ 56k (Pitchbook NVCA Monitor)
The Latest & Greatest Fund CFO Posts
#163 Top 7 VC CFO Posts of H1 2024 (All In One Place)!
Highlights: PitchBook-NVCA Venture Monitor (Q2 2024)
Every quarter, we highly recommend reading the PitchBook-NVCA Venture Monitor. In the report, they provide great market data on what’s going on in VC. From there, we can take that data and make some predictions about the future! Here are some of our favorite highlights from the 50-page report (we pulled out the best insights so you don’t have to). We’ll also share takeaways and predictions.
Multiples have not rebounded: currently at 4.9x.
Deal activity expands again. 4k+ deals, almost $60b in value. CoreWeave’s $8.6b Series C and xAI’s $6.0b Series B made up 26.3% of Q2’s total deal value.
Deal activity by year - on track to beat 2023.
Is early stage deal activity back?
Generative AI Infrastructure Megadeals: $38.6b YTD.
VC Exit Predictions (DPI) & Industry Challenges
Venture capital limited partners continue to look for exits but they just aren’t coming. The challenge is that the best companies don’t exit and the rest of the companies can’t make it happen.
In his latest post (linked here), Eric Newcomer shared the following:
“The traditional VC model is broken, as shown by Stripe doing non-dilutive financings every year. Stripe doesn't need to ever go public. But, LPs need liquidity for this model to work,” Miles Dieffenbach, managing director of investments at Carnegie Mellon, wrote in a post.
Only 15 venture-backed technology companies went public in 2022 and 2023 combined. Big acquisitions like Visa’s purchase of Plaid and Adobe’s purchase of Figma were derailed by antitrust investigations.
What does the data tell us about recent exit activity, expectations going forward, and industry challenges?
Keep reading with a 7-day free trial
Subscribe to @TheFundCFO Newsletter to keep reading this post and get 7 days of free access to the full post archives.