TLDR:
- Supply-demand imbalance for startups, with $300 billion of dry powder waiting to be deployed
- SaaS startups lead in funding, but overall VC activity lags behind previous years
Atlanta-based BIP Ventures released a State of Investing and Startups report for 2024, highlighting key trends in the private capital market. The report shows a supply-demand imbalance for startups, with a significant amount of dry powder available for investment. In 2023, investors deployed $11.6 billion into Southeast startups, with Georgia receiving a notable portion of that capital. SaaS startups continue to dominate funding in the region, while overall VC activity in early 2024 remains steady but below peak levels seen in previous years. The report also warns of challenges in investing, with increasing deal sizes and high inflation rates. Despite signs of the tech IPO market improving, valuations remain high. The venture market is described as “peak investor friendly,” with alternative investments expected to rise. Investors from BIP Ventures stress the importance of cautious investing in AI companies, as the landscape remains uncertain with companies leveraging AI for hype over true innovation.
