#189 VC Monitor Report Deep Dive (Q3'24) & Exit Predictions (DPI)

Author

Doug Dyer
October 17, 2024

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“If you cannot do great things, do small things in a great way.”

- Napoleon Hill

Picture of the Day: Pumpkin Nights at Pioneer Farms

Highlights: PitchBook-NVCA Venture Monitor (Q2 2024)

Every quarter, we highly recommend reading the PitchBook-NVCA Venture Monitor. In the report, they provide great market data on what’s going on in VC.

From there, we can take that data and make some predictions about the future! Here are some of our favorite highlights from the 50-page report (we pulled out the best insights so you don’t have to).

We’ll also share takeaways and predictions. Key bullets from the report:

  • The final exit value for Q3 was just $10.4 billion across 243 exit events

  • The number of VC-backed companies reached 57,674, a record high

  • $65.1 billion has been raised across 380 VC funds so far in 2024 – VC fundraising is on track to narrowly exceed 2023 level  

  • Dry powder continues to grow, reaching $328.4 billion 

Distributions remain low at 5% (vs capital calls of ~25%)

Number of VC Investors Down from 25k to 11k (and going lower)

On track for $175b in deal volume in 2024 (similar to 2020 pace)

There are now 57k VC-backed companies

Unicorns (co.’s @ >$1b valuation): 800 total, $2.5 trillion of value

VC Exit Predictions (DPI) & Industry Challenges

Venture capital limited partners continue to look for exits. The challenge is that the best companies don’t exit and the rest of the companies can’t make it happen.

From an earlier post: “Only 15 venture-backed technology companies went public in 2022 and 2023 combined. Big acquisitions like Visa’s purchase of Plaid and Adobe’s purchase of Figma were derailed by antitrust investigations.”

Q3 continued to see a lack of public listings:

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