As we look ahead to 2024, several key trends and developments are poised to shape the venture capital landscape, offering both challenges and opportunities for investors and companies alike.

• Down-Rounds and Funding Challenges: Companies facing funding challenges may continue with down-rounds and recapitalization in 2024. While tough decisions lie ahead, this could lead to increased deal activity at favorable terms for fund managers.
• Rise in IPO Activity: Optimism surrounds IPOs in 2024 due to a favorable economic outlook. Expected interest rate cuts and cooling inflation make IPOs attractive exit strategies, with anticipated mega issuances like Stripe, Klarna, and Databricks potentially driving a reopening in the summer or fall.
• Venture Capital Secondaries Market: The VC secondary market is expected to be robust in 2024. Despite challenges, high deal volumes and a shrinking gap between buyer and seller expectations indicate a strong pipeline of secondary deals.
• Continued Focus on AI: AI and data remain focal points in 2024, shifting from large language models to real-world applications. Anticipation surrounds the verticalization of AI in various industries.
• Emergence of New Fund Managers: The belief persists that new fund managers will appear, going after emerging specialized technologies and markets. Small fund sizes and discipline in portfolio construction for VC fund managers remain to be key attributes for generating outsized returns.

As we navigate the dynamic venture capital landscape in 2024, AQVC remains committed to seizing opportunities and delivering value! We are looking forward to a successful year ahead.