PitchBook – Venture Monitor, 2Q 2024

In the second quarter of 2024, the venture market is beginning to see distinctive trends emerging, signaling a generational shift. The peak of investment in various technologies during the COVID-19 pandemic has subsided, with a focus now on supporting promising companies towards maturity in a challenging exit environment. Returns to LPs remain a challenge, with decreased M&A activity and caution in entering public markets. However, buyouts and secondary market activity are on the rise. There is a trend towards larger check sizes, reflecting a premium on experience and confidence. Nonmarket forces such as the COVID-19 pandemic and geopolitical tensions have impacted the market, along with policy factors such as interest rates and industrial policies. Overall, there is cautious optimism in the market, with steady hands guiding the way forward. Bobby Franklin, President & CEO of NVCA, emphasizes the association's role in empowering transformative US-based companies and advocating for policies that support the entrepreneurial ecosystem.