#124 VC Market Data, Predictions in Charts

Hi everyone! đź‘‹ We’ve published >100 posts - appreciate the support/ sharing w/ friends! Welcome to our new members of @TheFundCFO crew! We recently launched a paid tier and released our VC Fund Playbook + Models @ Streamlined.Fund! Re-linking top posts: #96 The Case for 30+ Co.'s Per VC Fund, #88 Latest Takes on the State of VC, #86 VC Fund Stacks, and Full CFO Archive.

There’s a lot of great content from notable VCs, LPs, and CFOs/finance pros on the internet. Here, we’re focused on pulling out the insights out that really matter, as well as finding the most current content that overlays historical lessons with current market dynamics, which are changing faster than ever.

Every Tuesday/Thursday, we bring you actionable tools, real-world experiences, and insider insights for #VC CFOs/Finance Pros and fund managers, #LP investors, and industry enthusiasts/people who want to learn :). As a reminder:

  • Tuesday: insights + interviews. Free for everybody.

  • Thursday: deeper dives on VC GPs, CFO/COO strategy, more insights from LPs/GPs, and our take on what it all means (from 15+ yrs. of experience). Exclusive to Paid subscribers (most of whom expense these insights).

“Let’s do what we love and a lot of it.” -Marc Jacobs

Austin weather: Strong cold front to bring freezing temperatures | kvue.com

In Case You Missed It: The Year-End CFO/Finance Checklists

We’ve seen a lot of different frameworks over the years to keep track of all the requirements for funds at year-end. One of our favorites is breaking things down into four buckets: portfolio companies, investor reporting, compliance/legal, and operations/HR. Here’s some of the top items in each bucket for year-end…

VC Market Data in Charts - Looking Back at 2023

Every week, you can read a number of newsletters where folks talk about their VC market data and forecasts. That’s great but hard to digest and a lot gets lost in the noise. We always come back to what does the data say about recent history and what’s our forecast based on that and other influencing factors? Can we show this data in charts, graphs, or other visual representations in text?

Today, we bring you our latest takes on the VC market data and forecasts via the following charts from Term Sheet. Big takeaways are as follows:

  • Exits down in 2023: only $61.5 billion in exits in 2023. Ten years ago, in 2013, there was $75 billion. 

  • Valuations down big (except for seed)

  • Big deals are down big: 269 in 2023 vs. 800+ in 2021

VC Predictions - Looking Ahead in 2024

We read a number of VC prediction pieces over the holidays and in the first part of 2024. Here are some of our favorites listed/linked, as well as some compelling visuals to better retain. Let us know any we missed with a comment or email!

  • What Will Happen in 2024 (Fred Wilson)

    • It seems that a “soft landing” is likely

    • We are moving into the application era of AI

    • Regulators and lawmakers come to terms w/ web3

    • Coming out party for the new energy stack

    • I do not expect that venture capital investing and venture capital fund formation to grow that much year over year in 2024

  • 2024 Predictions (Tom Tunguz)

    • IPO market closed first 6 months, then re-opens

    • M&A accelerates

    • AI & data continue to dominate funding

    • Share of AI-enabled web searches approaches 50%…

    • BTC ETF drives a resurgence in interest in web3 financing…

  • 10 Predictions About The Future of VC (DDVC)

That’s all for today folks! Thanks for your support and spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”