L24: Is 2024 a Good Year for Raising Money ?

Is 2024 a Good Year for Raising Money? Localogy L24

Tech has been through a tough period as VC wallets have been slammed shut for a while. Or have they? We’ll ask those in the know what to expect in raising money in 2024 and beyond.

This panel included the perspective of an experienced investor and a startup founder who has recently been through the process of raising money and closing a funding round.

Key Takeaways

Here are some key insights that we gleaned from this conversation.

  • In 2020-2021 startups were raising money at a rate of  $100 billion per quarter, while In 2022-2023 this had dropped to $40 billion. Were there ever $100 billion worth of good ideas to invest in during any given quarter?
  • Raising money as a startup founder is a full-time job, To raise a $3.3 million round last year, Emily had to have 100 conversations to end up with four term sheets.
  • As is often discussed, investors are more stringent in what they want to see from companies they are investing in. They need to demonstrate not just revenue but a profitable business model.
  • VC funding is expected to experience a recovery this year. The process usually takes about nine quarters for funding to recover. And as Luca pointed out, we are eight quarters in.

E43: Hummingbirds’ Steele Puts Influencers to Work in Local

Is 2024 a Good Year to Raise Money ?

Tech has been through a tough period as VC wallets have been slammed shut for a while. Or have they? We’ll ask those in the know what to expect in raising money in 2024 and beyond.

Luca Sechi, Circumference Group
Emily Steele, Hummingbirds

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Is 2024 a Good Year for Raising Money? Localogy L24