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.
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
