JP Morgan – The Innovation Economy Outlook, 2024

The report by the JP Morgan report highlights the challenges faced by different stakeholders in the Innovation Economy amidst a turbulent macroeconomic environment. Founders have encountered difficulties in raising capital, as investors have become cautious and reduced their dealmaking activity. This has led to a decline in company valuations, affecting funding negotiations and growth projections. The availability of capital and credit emerges as the main challenge for business leaders, alongside the need to increase revenue and navigate uncertain economic conditions. Investors have also faced challenges in fundraising, with a decrease in the rate of capital deployment. The lack of exit opportunities has made it difficult for investors to generate liquidity from their portfolios. Both founders and investors are closely monitoring the exit environment, particularly looking out for any indications of the IPO market opening, as this could serve as a catalyst for revitalizing the venture capital cycle.