A Look at Venture Trends in Q1.2024

Although we opened up the 2024 with some optimism following the relative down year of 2023.

For those start-ups seeking to raise capital in Q1:2024, unfortunately the 2023 trend continued with investors remaining cautious. Overall financing down Y-o-Y from Q1:2023 by 20% as reported by both Crunchbase and Pitchbook.

Top sectors for funding in Q1 were Healthcare, Biotech, and AI.

Softness in Seed and Late Stage Financing

Both Seed and Late Stage rounds seeing declines, with continued weakness in IPOs impacting the latter group. While for Seed this lag was more surprising given the shift by many investors to participate earlier given the new funding environment.

Market Trends We’re Seeing

Through our network we’ve seen two growing trends in this new environment.

First, the majority of companies securing new financing were those with established strong underlying financials with either a healthy base of growing and/or recurring revenues to already achieving break-even, profitable operations.

Second were a growing number of Series A+ companies conducting both financing or the sale of the company. Driven by the reality that if financing is not achieved in a timely manner the company would need to either be sold or closed down. Placing significant pressure on Executive teams to manage both intensive processes.

Opportunity

Consider engaging with an outside expert including a Fractional CFO to help you prepare, manage and improve both your financial practices to optimize your potential attract new capital and lengthen the runway you already have today.

Contact us to learn more about how Anabatec or one of our partners could help you.