"Predicting the future is a hazardous business." - Arthur C. Clarke

No words ring more true. When we first contemplated MT❯Ventures in 2019, we could not have anticipated a global pandemic, game-changing AI and talent squatting. Yet here we are predicting the future. Here are MT❯Ventures’ top three predictions for the startup ecosystem in 2024.

i. Early-stage VC funds targeting Seed and Series A investments will double down on their investment volumes although deal sizes may be smaller.

Early-stage venture capital funds are anticipated to intensify their investment efforts as the venture market improves through 2024, even though individual deal sizes may decrease. As the market recovers from its reset in 2022 and 2023, early-stage investors will seek to diversify their portfolios to maximize upside exposure to high-potential innovations across various sectors. But do not be fooled, while investors will increase their investments in early stage companies, this will not be at the expense of extensive due diligence. Gone are the days of 3 weeks from term sheet to close; investors will continue to scrutinize potential investments.

ii. M&A will explode as early-stage companies funded at the high end of the venture market run out of cash.

A surge in mergers and acquisitions is expected as many early-stage companies funded in the years 2019 through 2021 approach the end of their financial runways. Faced with the challenge of sustaining operations and growth, these startups may explore M&A opportunities as a means of survival where viable alternatives cannot be found. Watch for big name CEOs being acquihired and companies in similar verticals consolidating their businesses to save on back office expenses.

iii. Companies focused on hyper personalization will thrive.

Companies specializing in hyper-personalization are anticipated to thrive as customization becomes an increasingly integral aspect of consumer experiences. Expect to see businesses attempt to gain a competitive edge in the market by leveraging advanced AI and data analytics to tailor offerings to individual preferences. Hyper-personalization will be seen in every vertical in 2024 as a game changer. We are already seeing advanced AI and data in the spaces of fintech, healthtech and consumer goods.

To discuss your thoughts on 2024, please reach out to a member of the MT❯Ventures team or contact us at [email protected].