TLDR:
- Investors are expanding their interests beyond AI into sectors such as cybersecurity, blockchain, renewable energy, manufacturing, agtech, proptech, construction, legal tech, and oil/gas.
- Sectors such as healthcare, legal tech, and software are expected to benefit immensely from AI integration.
- Global events like the Paris Olympics and international elections will influence industries such as sports tech, media, hospitality, travel, and renewable energy.
- While 2024 may be a challenging year for venture capital, with stricter investment criteria and cautious investor behavior, a recovery is expected in 2025.
AI’s presence in the startup world is undeniable, but investors are now looking beyond AI and exploring other sectors that capture their interest. Jahn Karsybaev, Founding Partner at Big Sky Capital, points out that cybersecurity is gaining attention as AI presents a greater threat to enterprise security. Cybersecurity investments are expected to double in the next few years. Valerie Bertele, GP at Yellow Rocks, emphasizes the increasing interest in sectors such as agtech, proptech, renewable energy, and manufacturing due to the opportunities created by AI advancements.
The article also highlights the potential benefits of AI integration in healthcare, legal tech, and software. The amount of innovation that technology is bringing to healthcare is seen as particularly promising, with incremental improvements leading to substantial results. International events like the Paris Olympics and global elections are expected to influence industries such as sports tech, media, hospitality, travel, and renewable energy. The rebound of international tourism, coupled with the desire for post-pandemic travel, is likely to benefit the hospitality and travel sectors. The growth of electric vehicles and renewable energy could reshape greentech and smart city initiatives.
Despite these opportunities, 2024 may prove to be a challenging year for venture capital. Jahn Karsybaev predicts that it will be worse before it gets better, with stabilization and growth expected in 2025. Investors may be more cautious due to upcoming elections, but more VCs are allocating to early-stage critical technologies that are expected to have a significant impact in the following years. While 2024 may not be the peak year for fundraising, the focus is shifting towards quality over quantity in the venture capital landscape.
