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Venture capital firms remain cautious about 2024 investments, with ecommerce ranking low on their priority list, according to a PitchBook survey of 53 firms. Only 30% expect to fund disruptive ecommerce technologies, compared to 50% eyeing enterprise applications and 40% targeting logistics innovations.
The H2 2024 VC Tech Survey reflects cautious optimism, with 75% reporting stable equity stakes in funding rounds. Fundraising shows momentum, as 42% plan to raise new funds within a year, while 45% anticipate doing so within two years. However, 14% of investors in the first six months and 8% in the second half 2024 have no plans to raise funds, reflecting the lingering effects of 2021’s inflated valuations.
For the first time, many investors expect 2024 to deliver the highest returns on investment. AI dominates sentiment, with 47% bullish on its disruptive potential, up from 34%. Key growth areas include healthcare AI, AI infrastructure, biotech, defense, fintech, energy, robotics, and quantum computing, driven by innovation, efficiency, and sustainability.
However, concerns about oversaturation persist. Sectors like chatbots, general-purpose AI, and crowded fintech and healthcare markets face diminishing returns, while commoditization of large language models and redundant applications remain challenges.
Specific findings include:
Stable deals: 75% of VCs reported consistent equity stakes in H2 2024, signaling stability in a cautious investment climate.
AI leads: Confidence in AI surged, with 47% bullish on its potential. Key focus areas include healthcare AI (39%), AI infrastructure (33%), and biotech (24%).
Gains taction: Robotics (55%) and quantum computing (38%) are top priorities, highlighting their transformative impact on logistics, manufacturing, and cryptography.
Oversaturation: Chatbots, general-purpose AI, healthcare, and fintech are seen as overcrowded markets with limited differentiation and diminishing returns.
Shifting priorities: While 42% plan to raise funds in 2024, 22% have opted out due to lingering effects of 2021’s inflated valuations. Underinvested sectors like foodtech (57%), enterprise SaaS (20%), and crypto tech (16%) are gaining attention.
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