#147 Navigating the VC Landscape in 2024

April 11, 2024

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Texas Venture Gala & Forum

Top Reads of Recent History, VC CFO Style

In the Q1’24, the US VC stayed slow but is maybe finding a bottom?! Key stats:

  • $36.6 billion invested across 3,925 deals, remaining steady compared to previous years

  • $300 billion in dry powder available

  • Defensive investment climate, where investors are focusing on existing portfolios rather than new ventures

  • Insider-led rounds are prevalent, while first-time financings are at multiyear lows.

Where does VC go from here? 

  • DPI: For LPs, distributions are what matter. Pitchbook-NVCA data shows how low those realized returns have dropped during the market slowdown.

  • New Commits: In Q1, just $9.8 billion of new fund commitments were closed, or rather, 5.0% of the 2022 annual high.

  • “With little capital to recycle into the market, LPs have come under further pressure in navigating their exposure to venture.”

  • IPO’s: Though the IPOs of Reddit and Astera Labs grabbed the spotlight during the quarter, total exit value reached just $18.4 billion, dampening the outlook of an increase to distribution rates just yet.  

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