TLDR:
- The majority of venture capital investors in Central and Eastern Europe (CEE) plan to allocate more funds in 2024
- Generative AI and Deep Tech are the key industries for VC investments in the region, followed by healthtech and biotech
- Startups are advised to be more conservative with their spending and focus on profitability over growth
- Investors are optimistic that new unicorns will emerge from the CEE region, but many are also betting on the camels and zebras in the ecosystem
A recent survey of venture capital investors in Central and Eastern Europe (CEE) conducted by The Recursive reveals that 70% of them plan to allocate more funds in 2024. Despite geopolitical uncertainty and a challenging economic climate, VC investors in the region are overall positive about the market and foresee a similar or more favorable market compared to 2023.
Generative AI and Deep Tech are the standout industries for VC investments in CEE, followed by healthtech and biotech. Investors are shifting their focus to acyclical verticals that are less vulnerable to market conditions. B2B SaaS startups are also a popular choice for VC investment.
Investors are optimistic about the emergence of new unicorns in the CEE region in 2024, but many are also betting on the camels and zebras in the ecosystem. Startups are advised to be more conservative with their spending and focus on profitability over growth. Funding may remain challenging, and investors will be diving deeper into the unit economics of startups.
Overall, the survey indicates a cautious yet hopeful outlook for VC investments in the CEE region in 2024. While challenges exist, the market contraction is seen as an opportunity for advancement and the ecosystem has the capacity to foster innovative and successful startups.
