Why VCs are bullish about 2024

January 8, 2024

Hi, Agen. Feeling optimistic about 2024? You’re not alone. Startup investors we spoke with are pretty upbeat about what this year holds for the industry. That’s despite 2023 ending on a down note for North American startup funding.

💰 Forecast: Why VCs are bullish about 2024

Many venture investors are starting the new year feeling quite good about the startup industry’s prospects in 2024. Funding has likely already hit its low, the exit markets seem poised for a comeback, and the industry appears to be coming to terms with the new normal of work, they argue.

📉 North American startup funding ends 2023 on a down note

Hope clearly springs eternal for startup investors. Despite all their positive feelings about 2024, Crunchbase data shows we enter the new year coming off a low for startup funding in North America, the largest market for venture investment. Not only were dollars down in Q4, but deals were too. Dive in with our year-end report.

🎮 Investors press pause on gaming startups

Although shares of big gaming companies such as Electronic Arts, Nintendo and Sony performed quite well last year, smaller startups trying to compete in the space largely struggled to score funding from investors, Crunchbase data shows.

Related Crunchbase Pro list: Gaming-Related Startup Funding

✂️ Tech layoffs continue in new year

All told, nearly 200,000 U.S. tech workers — in reality, likely many, many more — lost their jobs in 2023. That was more than double 2022’s total. Will 2024 offer some reprieve? Time will tell, but for now it looks like layoffs are continuing in the new year.

📉 Startup funding in 2023 hit lowest level in 5 years

It wasn’t just the unicorn startups that were hurting in 2023’s dismal venture funding environment. In fact, early-stage investment declined more than any other funding stage in 2023, falling 40% year over year. We look at that and the other big numbers and trends with our exclusive global startup funding report.

👀 5 trends we’re watching in 2024, from M&A to IPOs

Between the rapid ascendance of AI and the often dramatic downfall of startups large and small, 2023 was action-packed. We expect 2024 to be the year when things settle down a bit — but that doesn’t mean there aren’t some big trends to watch in the new year. Here are our top five.

Get more with Crunchbase Enterprise

Find out more about Crunchbase’s prospecting software that enables your entire team to find the right companies, identify the right people, and connect with the decision-makers who can move deals forward – all in one solution.

BOOK A MEETING NOW

Recent Investments

Beckley Psytech

$40M / Corporate Round

Beckley Psytech is a clinical-stage biotechnology company that explores the therapeutic potential of psychedelic substances.

Categories:

Biotechnology • Health Care • Medical

Founders:

Cosmo Feilding Mellen, Lady Amanda Feilding

Investors:

ATAI Life Sciences (Lead)

Sapphiros

$30M / Series B

Sapphiros invests in growth-stage diagnostic companies, focusing on technologies that prioritize innovation and patient-centric approaches.

Categories:

Business Development • Health Care • Health Diagnostics

Founders:

Namal Nawana

Investors:

OraSure Technologies (Lead)

Nabla

$24M / Series B

Nabla provides a machine learning-powered care platform to build an engaging relationships with patients.

Categories:

Artificial Intelligence (AI) • Electronic Health Record (EHR) • Health Care • Machine Learning

Founders:

Alexandre Lebrun, Delphine Groll, Martin Raison

Investors:

Cathay Innovation (Lead), ZEBOX Ventures

More Fundings

Company	Amount / Round	Lead Investor
Country Delight	1.6B INR / Series E	Temasek Holdings
Beckley Psytech	$10M / Secondary Market	ATAI Life Sciences
UrbanStems	$5.0M / Series C	DFE Capital Management
All Recent Funding Activity