In this article, VCs, private equity investors, and tech founders make predictions for the private markets in 2024. Some of the key points include:
- Two-thirds of startups will face extinction, leading to a reset in the industry and a flood of available talent for the next wave of companies.
- LPs will gain more power as the VC market shifts, leading to managers retrenching their fundraising strategies and raising smaller funds than their predecessors.
- Investment into startups will fall below $100B for the first time since 2017, and tech unicorns that have not adapted their financial models will begin to fail.
- Millennials will diversify their holdings into long-term private investments that align with their interests and experiences.
- The Series A market will pick back up dramatically in 2024.
- Private equity fundraising will continue to be challenging, with a focus on supporting bolt-on acquisitions and reassessing portfolio company capital structures.
- More companies will pursue “take privates” as CEOs weigh the time and value creation potential in public markets versus private markets.
- M&A activity will continue, with consolidation being a big theme in 2024.
