#205 Best of 2024 & Top Premium Content (Organized)

👋 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!).

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This is our last post of 2024 - thanks for another great year! Venture capital investments are (hopefully) back and we will see what all things technology (AI) has in store for us in 2025! In the meantime, fund models, budgets, compliance, and general finance / operations still matter!

Here’s a link to our last post, where we rounded up the Top 10 CFO Posts of 2024. Don’t miss this ultimate highlight reel: #204 Top 10 CFO Posts of 2024.

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Best of 2024: Fundraising Summary

This year, 74% of the total venture capital raised in the U.S. was concentrated among 30 firms, with 9 of them accounting for half of the total committed capital:

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Best of 2024: Predictions vs. Reality

From VC Predictions - Looking Ahead (from January 2024), we shared predictions for 2024 from industry thought leaders like Fred Wilson and Tom Tunguz. Now that we’ve closed the year, it’s time to reflect on what materialized, what surprised us, and what still lies ahead.

Fred Wilson foresaw a “soft landing” for the economy, the rise of AI applications, and greater regulatory clarity around web3. Looking back, his insights were largely on point: AI adoption surged, with startups in generative AI driving significant funding rounds, while web3 regulation found some footing globally.

Tom Tunguz anticipated a slow start to the IPO market, followed by a strong rebound in H2, alongside M&A acceleration and dominance of AI/data funding. H2 wasn’t as strong as expected, although the IPO window cracked open in late Q3 and strategic acquisitions taking place. AI startups like Anthropic and data-driven enterprises led funding headlines, aligning with his focus on these themes.

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Reflecting on 2024 Market Trends: Did the Charts Tell the Full Story?

From January, VC Market Data, Predictions in Charts, we analyzed VC market data and predictions for 2024 based on the challenging landscape of 2023. With exits significantly down—$61.5 billion compared to $75 billion in 2013—and big deals dwindling (269 in 2023 vs. 800+ in 2021), the stage was set for a recalibration in venture investing. Predictions of a "soft landing," the rise of AI applications, and a plateau in VC investing/fund formation were on the radar.

As we close out 2024, the year largely played out as anticipated. While overall investing remained flat, generative AI drove new opportunities, and fund managers focused on strategic seed and early-stage investments to hedge against macroeconomic uncertainty. Exits began to recover late in the year, helped by a cautiously reopening IPO market and more strategic M&A deals.

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Top Premium Content (Organized)

One thing we do at year-end is get organized! As we close the year, we organized our top premium content all in one place, right here. Thank you to the premium subscribers for their support!