TLDR:
- VC funding declined by 38% in 2023, making it the lowest year since 2018.
- Panel of VC investors at The Tech Arena 2024 emphasized the importance of looking beyond trends in future investments.
The VC landscape faced challenges in 2023 with a significant decline in global startup funding, leading to the lowest year for venture capital since 2018, according to Crunchbase. At The Tech Arena 2024, a panel of experienced venture capitalists discussed the future of VC investment and highlighted key insights for startups and scale-ups aiming for funding in this challenging environment.
Olu Oyinsan, Co-Founder and Managing Partner at Oui Capital, cautioned against getting caught up in trends, stressing the cyclical nature of VC investing. Oyinsan emphasized the importance of looking beyond buzzwords and focusing on sustainable business cases rather than fleeting trends. Olga Shikhantsova, a partner at Speedinvest, echoed this sentiment, comparing the current hype around AI to the early days of the internet and stressing the need to invest in real market problems.
The panel also discussed the significance of long-term thinking when investing in solutions, particularly in climate tech. Andreas Helbig, Partner at Atomico, emphasized the importance of adopting a long-term perspective in a field often driven by short-term hype waves. Fausto Boni, Partner at 360 Capital, highlighted the importance of governmental stability in supporting innovation, especially in complex sectors like climate tech.
Overall, the panel reached a consensus that while the ship has sailed on AI language training models, climate tech remains a promising field for future investments. By focusing on sustainable business cases, real market problems, and long-term perspectives, startups and scale-ups can position themselves effectively in the evolving VC landscape.
