State of the market - Trends in VC funding in clean technology
The start of 2023 presented a unique and challenging environment for startups, with macroeconomic shifts influencing everything from investment strategies to company operations. These trends continued in 2024 - so taking a look back at what happened in 2023, we can paint a more comprehensive picture of the funding landscape and the opportunities that emerged amidst the challenges. The Macroeconomic Reality: A Shift in the Venture Market The "frothy" valuations of the previous years were gone, and the overall VC market was contracting as described by Cervin in their report for 2023. This was a "déjà vu all over again" moment, with echoes of the 2008 financial crisis. The report noted a significant decline in pre-seed and seed deal value, as well as a drop in the number of active venture firms. In this environment, "disciplined entrepreneurship," looks even more important and the advice for startups is to focus on building sustainable, scalable businesses....