Venture capital financing during crises: A bibliometric review
Endeavor’s 2024 VC Predictions provide a forward-looking analysis of key trends shaping the venture capital landscape, emphasizing emerging markets, regional IPOs, and sector-specific shifts that will define investment strategies in the coming year. As global venture capital adjusts to macroeconomic pressures, shifting investor sentiment, and technological advancements, these insights highlight where capital is flowing and what factors will drive startup success in 2024.,One of the major themes is the rise of emerging markets as attractive investment destinations. With high-growth potential, increasing startup ecosystems, and improving regulatory environments, regions such as Latin America, Southeast Asia, Africa, and the Middle East are witnessing a surge in VC activity. Investors are looking beyond traditional tech hubs like Silicon Valley, London, and Beijing to identify new opportunities in fintech, e-commerce, climate tech, and AI-driven solutions. As local governments introduce pro-entrepreneurship policies and digital infrastructure expands, these markets are expected to produce a new wave of high-growth startups capable of scaling globally.,Another key prediction revolves around regional IPO activity, as public markets start to recover from the downturn of the past two years. While global IPOs have been sluggish, select regions—particularly India, the Middle East, and Southeast Asia—are gaining momentum, with startups preparing to go public on local exchanges. This trend is fueled by strong domestic investor demand, maturing startup ecosystems, and regulatory support for local listings. Additionally, dual listings in major financial centers like London, Hong Kong, and New York may become more common, offering startups access to diverse pools of institutional capital.,On a sector level, Endeavor highlights AI, climate tech, and deep tech as the key investment areas of 2024. Artificial intelligence continues to disrupt industries, with VC firms prioritizing AI-driven automation, generative AI applications, and AI-powered infrastructure. Climate tech investment is also accelerating, driven by corporate sustainability mandates, government incentives, and increasing pressure to combat climate change. Expect breakthroughs in energy efficiency, carbon capture, and sustainable supply chains to attract significant funding. Meanwhile, deep tech sectors such as biotech, quantum computing, and advanced manufacturing are gaining traction as long-term investment bets.,Additionally, venture capital strategies are evolving in response to market volatility and changing risk appetites. Investors are shifting towards smaller, high-conviction rounds, focusing on profitability and capital efficiency rather than rapid, unprofitable growth. The era of massive late-stage funding rounds is giving way to structured deals, strategic partnerships, and milestone-driven investments. More VCs are also leveraging alternative financing methods, such as venture debt and revenue-based financing, to support startups with strong fundamentals but limited access to traditional equity financing.,Overall, 2024 is expected to be a pivotal year for the VC landscape, with emerging markets, sector-driven investments, and regional IPOs shaping the future of startup funding. As investors seek resilient business models and strategic market opportunities, startups that demonstrate capital efficiency, clear growth pathways, and technological innovation will be best positioned to thrive in this evolving environment.,
Why is relevant?
The 2024 global venture capital landscape is set to undergo significant transformation as investors shift their focus toward capital efficiency, sustainable growth, and high-impact sectors like AI, climate tech, and deep tech. In contrast to previous years, where aggressive expansion and rapid valuations dominated, the emphasis is now on profitability, strong unit economics, and strategic scaling, forcing startups to prove their resilience in a capital-tight environment. Artificial intelligence continues to be a major investment driver, not just in generative AI but across automation, AI-driven analytics, and infrastructure, where businesses are developing tools that improve efficiency across industries. Alongside AI, climate-focused startups are attracting increasing investor interest due to rising regulatory mandates, sustainability-driven corporate strategies, and global climate commitments, leading to strong funding in areas such as carbon capture, alternative energy, and supply chain optimization. The funding landscape is also witnessing a geographical shift, with emerging markets—particularly in Southeast Asia, Latin America, the Middle East, and Africa—seeing an influx of VC capital as investors seek untapped opportunities beyond the traditional dominance of Silicon Valley and other established tech hubs. Regional IPOs are becoming more prevalent as startups opt for local stock exchanges in countries with stronger investor participation and government-backed innovation incentives, offering viable liquidity options outside the historically dominant U.S. markets. Meanwhile, corporate venture capital (CVC) is growing in importance, with major corporations increasingly investing in strategic startups to bolster their own innovation pipelines, leading to greater corporate-startup collaborations, particularly in fintech, biotech, and AI. Late-stage funding, which saw exponential growth in previous years, is now experiencing a recalibration, with investors becoming more selective, favoring structured deals, extended exit timelines, and down rounds where necessary. This environment is pushing startups to explore alternative fundraising models, such as venture debt, revenue-based financing, and secondary markets, as a way to extend their financial runway without excessive dilution. The deep tech sector—comprising biotech, quantum computing, space tech, and next-generation hardware—is also gaining momentum, attracting sovereign wealth funds, university endowments, and long-term capital providers who recognize the potential of high-risk, high-reward innovations despite longer commercialization timelines. Venture capital firms themselves are adapting to these new market realities, shifting toward smaller, more disciplined funds, milestone-based funding structures, and co-investment models, ensuring that capital is deployed strategically rather than aggressively. As the funding ecosystem evolves, startups that demonstrate financial discipline, clear market differentiation, and innovative technology adoption will be best positioned to secure investment and thrive in this new era of venture capital.,

Author
Jackie Carmel
Publication date
January 11th, 2024
Difficulty
Basic
Keywords
- Global Venture Capital
- Evolving Ecosystems
Last update