Part of our role at Raize Digital is to stay on top of the latest venture capital trends and predictions to help our clients make informed decisions. Here is what we are currently seeing in the market.
- Investors are optimistic the number of deals will increase but deal sizes may remain smaller than average.
- With lower levels of exits, limited partners have fewer dollars to reinvest into funds.
- Investors continue to be cautious and take longer to perform due diligence, and deal timelines continue to be extended under the current macroeconomic conditions. Companies that delayed fundraising are returning to a challenging fundraising environment.
- Non-dilutive financing continues to be a sought-after option by companies.
- Artificial intelligence (AI) continues to be a focus and upcoming regulations are anticipated.
- While emerging fund managers are closing more impact funds, established fund managers are attracting the majority of capital in the impact space.
- The federal government has published its 2024 Budget including some changes affecting Canadian industry.
(Sources: CVCA, Bennet Jones, BetaKit, The Logic, Pitchbook, TechCrunch)