- In 2024, it’s likely that startups and venture capitalists (VCs) will see a “wash out” of legacy growth deals due to slow global growth and political uncertainties.
- Bitcoin is expected to receive a boost when the first ETF approval potentially increases liquidity tenfold, benefiting Bitcoin startups focused on financial solutions for the cryptocurrency.
- The hype around AI is predicted to give way to viable use-cases in sectors such as healthcare, finance, and manufacturing, amidst growing costs and regulatory challenges.
- Smart, data-driven manufacturing is on the rise, with increasing VC and government investment into technologies for real-time operational insights, efficiency improvements, and waste reduction.
- VCs are showing increasing interest in the potential of hardtech, or physical world engineering and scientific breakthroughs, to address big challenges like climate change and the energy transition.
- Despite its challenges, digital health is likely to progress with the rise of federated data platforms, and AI models that improve early intervention, diagnostics, and treatment recommendations.
- The B2B and cross-border payments sector will continue to see growth, with startups using blockchain and AI to create efficient, cost-effective solutions.
- The economic and funding climate of 2023 is tipping the scales towards frugal entrepreneurs focused on sustainable growth and profitability rather than growth-at-all-costs.
2024 holds mixed predictions for VC’s and startups. On one hand, slow global instability coupled with political uncertainties in the UK and US, will likely continue to impact investor confidence and valuations, leading to a wash out of legacy growth deals. This could result in financial pain for many founders and venture funds.
Yet, there are also bright spots on the horizon. Bitcoin startups might see a boost owing to the expected approval of the first Bitcoin ETF in early 2024, which could potentially increase liquidity tenfold. In the AI sector, despite growing legal and regulatory challenges, AI use-cases are anticipated to become more specific and viable in sectors such as finance, healthcare, and manufacturing.
Smart, data-driven manufacturing could prove another hot sector, with increasingly sophisticated technologies providing real-time operational insights. There is also a rise in VC interest in the potential of hardtech, to address pressing global issues such as climate change, thus making this area ripe for future investments.
The digital health scene could also see accelerated growth, with the rise of federated data platforms and AI models aiding early interventions and improved diagnostics. B2B and cross-border payments are also set for growth, with startups integrating blockhain and AI to create efficient, cost-effective solutions.
Perhaps one crucial shift could be the rise of ‘frugal entrepreneurs’, who prioritize sustainable growth and profitability rather than a growth-at-all-costs approach. This is likely to be a defining trait in successful entrepreneurs in 2024.
