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How the pre-seed round made a comeback in 2024

VC Cafe

Carta reports that 20% of the rounds in 2023 were down rounds, but I believe the actual number is much higher. For that and other reasons (like cash preservation) VCs moved to focus more on earlier stage, and many funds that typically invest in A started deploying more into seed rounds.

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How’s Venture Capital Changing in 2023

VC Cafe

From a technology point of view, new tech tools like generative AI means that tasks can be accomplished with fewer resources and at a higher speed. Seed and pre-Seed investment levels and valuations remain healthy, there’s more talent in the market and less competition.

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2023 Global Venture Reports were Gloomy, but there are reasons to be optimistic

VC Cafe

And not a particular sector, but AI startups, in particular generative AI attracted close to $50 billion in funding last year, globally. Most of that funding went to foundational models like OpenAI, Anthropic and Inflection AI which collectively raised $18 billion in 2023. Generative AI is game changer.