TLDR: Predictions from Top Investors on Climate, Politics, and Health for 2024

Term Sheet readers share their predictions for climate, politics, and health in 2024. Here are some key points from their predictions:

• Investors predict that there will be a semi-serious national debate over renaming the heat pump to increase consumer adoption.
• The Inflation Reduction Act (IRA) is expected to provide a boost to private equity investing in clean energy.
• Investors believe that valuations in the climate tech sector will decrease after realizing that the IRA will not support unprofitable businesses indefinitely.
• Demand for electricity in the U.S. is expected to grow rapidly, driven by electrification, data centers, and a manufacturing renaissance.
• Many investors predict that the majority of cell cultured meat companies will fail to raise additional capital and go out of business by 2024.
• There is a prediction that AI applications in energy will increase, putting a greater load on electric infrastructure.
• Cleaning industrial and commercial HVAC systems is seen as a simple and effective way to improve energy efficiency and reduce carbon emissions.
• Vehicles with the Vehicle to Home (V2H) feature, allowing owners to power their homes during outages, are expected to become more common.

Politics and Regulation:

• Big technology bets will turn to government sources for funding as private funding markets cool off.
• The Biden administration is not expected to ban TikTok, but it will remain banned in federal offices.
• Technologies that reduce dependence on other countries for manufacturing and deployment will be important amid deglobalization and geopolitical tensions.
• Financial regulators may face lawsuits and efforts to undermine their regulatory initiatives in 2024.

Diversity and Activism:

• Despite broader issues around litigation and affirmative action, progress towards diversity, equity, and inclusion (DEI) within private markets is expected to continue.
• As Gen Z dominates the startup landscape, VCs will need to align with values related to activism, identity, and ethics to build lasting relationships with entrepreneurial college grads.

Health:

• As the reasons behind the disproportionate impact of certain chronic conditions on women are explored, there will be a shift back to basic science.
• Investments in companies producing at-home testing of women’s hormonal profiles are expected to increase.
• The number of Americans on GLP-1 medications is predicted to double by the end of 2024.
• Science-backed health and wellness products supported by scientific evidence will create new opportunities for doctors-turned-founders in the creator economy.
• MRD testing is expected to accelerate and become mainstream medical practice in 2024.
• Some digital health companies may face challenges and disillusionment as they fail to deliver on promises of higher quality care at lower cost.

Consumer:

• The consumer sector is expected to stimulate M&A activity, and consumer-focused startups may need to bootstrap, seek alternative financing, or explore strategic partnerships.
• Consumers may become fatigued and skeptical of products pushed through social media, leading to a return to simplicity and a focus on product quality.
• WhatsApp is predicted to become a primary business communication and payment system.

Other predictions include Tesla maintaining its leadership, companies exploring sales to the Department of Defense for the first time, and a new “space race” era between the U.S., China, and India.