🕯Next-gen family office leadership will champion more VC commitments

The volume of family offices has grown >10x since 2008 and has served as one of few available capital sources for founders and fund managers in the current market slowdown.

Against this backdrop, we’re in the middle of the greatest intergenerational wealth transfer in history. I believe this emerging wave of next-gen family office leadership (especially millennials whose lives have been shaped by tech innovation) will champion greater venture capital activity in 2024 and beyond. Uniquely, many of us seek to produce top-quartile returns and align our investment portfolios with our values.

Broadly speaking, I anticipate a healthier venture ecosystem for all, once the IPO market fully reopens.

— Esther Tricoche, Managing Director, MALIAM

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🔔New managers starting VC firms will increasingly be spin-outs from big firms

In the next 12 months, I believe we’ll see a steady pace of new fund managers starting firms, and an increasing number of these managers will originate from existing brands rather than primarily operating backgrounds. I expect they’ll have a hunger and hustle that will benefit founders after years of tourist investors and create a competitive pressure on other established investors to up their game.

— Lisa Cawley, Managing Director, Screendoor

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📌 VC firms that are heavily entrenched, either through legacy or specialism, will be most appealing to LPs

The same goes for how LPs are thinking about making new commitments; those that are heavily entrenched, be it through legacy or specialism, will be most appealing as potential primary investment opportunities for LPs, as safer pairs of hands in a still turbulent market.

As such, emerging managers must field teams that can demonstrate some experience and passion about the strategy, and already have (or at least be building) competitive advantages to source, win and develop great investments over a cycle. Investors have many choices for where and when to deploy their capital, so emerging manager propositions must be even more compelling than existing options.

— Chloe Dagnell, Principal, Isomer Capital

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📊2024 will be the year of the hyper-specialist VC

2024 will be the year of the hyper-specialist VC. Where conviction is hard to come by, and FOMO isn't driving investment decisions, specialists who know how to pick in this market will shine. With a significant reduction in capital allocated to VC in 2023, the supply and demand laws are tipping in favor of GPs with capital. Specialists who select well and pay close attention to entry prices have the power to unlock outsized returns, whilst the number of GPs investing could half.

— James Heath, Investment Principal, dara5

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🫂The Average Age Of A Startup Founder

59% of the startup founders worldwide are over 40, and just 16% are between 20 and 30 years old.

📌According to the US Census Bureau, the average age of founders across all businesses worldwide is 42 years.

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🔥There Are Over 10,755 Fintech Startups In The United States As Of 2024

This number has doubled since 2020, when only 5,686 fintech startups existed.

👌The fintech market in the United States is worth $4 trillion as of 2024 and is predicted to grow at a CAGR of 11% till 2028.

🔉That means that the number of Fintech Startups in the US will also increase rapidly in upcoming years.

👕Source

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🫂The Average Cost Of Starting A Business

This may vary depending on factors like industry, products, services, and store location.

🛡The cheapest businesses may cost as little as $12,000 initially. In contrast, other businesses, like restaurants, may cost $400,000 or more.

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🫂71% Of Startup Founders Have Completed Just A Bachelor’s Degree

Nearly three-fourths of startup founders have just a bachelor’s degree. While 16% of the founders stated they have a master’s degree.

📝Just 3% of the founders worldwide own a doctorate.

🔃The education level of a person does not make him a successful founder. However, a person’s experience and knowledge in the industry help a startup succeed.

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📧There Are Over 26,300 Fintech Startups Worldwide

This number has more than doubled since 2019, when there were only around 12,000 fintech startups.

🗯The United States produces the most value in fintech, with 134 unicorns in 2024.

👕Source

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🏳️Health Tech Startups In The United States

This number has grown rapidly in the past three years. Further, the experts predict that the number of health tech startups will reach 50,000 by 2025.

🔗Healthcare startups have the potential to impact global health disparities significantly. Factors like poverty and socioeconomic conditions drive these disparities.

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🎤Agtech & New Food is the fastest-growing startup industry

Agtech & New Food startups experienced a 128% increase in funding between 2021 and 2022, the largest increase among all industries.

📌Only 2% of global startups are Agtech & New Food.

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➡️AI startups attract over $24 billion in funding per year

Funding for AI startups increased 327% between 2016 and 2020.

➡️Grammarly is currently the highest-valued AI startup at $13 billion.

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📟Cannabis startups raise an average of $1.86 million from seed-stage investors

As more US states legalize recreational marijuana, investors are seeing opportunities in cannabis startups.

💬Online retailer Dutchie — valued at $3.75 billion — pulled in $350 million in Series D funding.

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🤚San Francisco is the highest-ranked city for startups

StartupBlink ranks every global startup city based on startup quality, quantity, and the overall business environment. San Francisco leads the rankings by a huge margin with a 546.427 score.

🔥Rounding out the top 5 best cities for startups are New York (223.407), London (127.426), Los Angeles (116.943), and Boston (103.337).

👕Source

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🫂80% Of The Startups In The United States Fail

The highest Startup failure rates are recorded in South Africa. The Major reasons are lack of funding, regulatory obstacles, infrastructure deficits, limited mentorship, frugality issues, and inadequate marketing and branding.

📌Canada and France, too, have a similar failure rate.

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🤚Exit value & trends Q1 2024

On the back of the Reddit and Astera Labs IPOs, Q1 saw a 77% increase in exit value compared to Q4 2023, marking a positive shift.

🕔However, it’s important to note that the exit value of $18.4B in Q1 was still well below the $269.2B peak in Q2 2021.

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