Episode 46 Is 2024 The Year of Investor Restraint and Startup Resilience?
Download MP3Will 2024 will be another challenging year for startup founders?
The world bank came out with the following prediction for 2024:
“Global growth is projected to slow for the third year in a row—from 2.6% last year to 2.4% in 2024, almost three-quarters of a percentage point below the average of the 2010s. Developing economies are projected to grow just 3.9%, more than one percentage point below the average of the previous decade.”
They are dubbing it the “Weakest Half-Decade Performance in 30 Years"
This is a so-called recession that never really came (because of low unemployment, despite higher interest rates) there are indications similar to what we’ve seen at the start of the Ukraine/Russia war (2 years ago) that set off an economic fallout that saw the steep fall of Crypto and NFT and, in parallel massive investment pullout from overvalued startups that received millions in funding during the pandemic.
This time while the global economy is in a better place, mounting geopolitical tensions. Innovation will take a hit as we’ve already witnessed at the end of 2023 with rising tech layoffs
“Amazon saw the most workers laid off in 2023 (27,410 workers) followed by Meta (21,000), Google (12,115) and Microsoft (11,158).” This continued as we ventured into the new year with more layoffs from Big Tech
In the fall of 2023 David Wright, Investment Analyst remarked, “Investor returns in the VC industry have not always paid up for the risks involved in private investments.”
Wright noted that in the last 4 decades, VC fund performance had its ebbs and flows with the mid-to late nineties being the standout period. “The average returns from VC investments have consistently hovered around 9%, comparable to public markets,” but Wright highlights that the more telling metric is the “1.8% returns indicating that there is a disproportionate performance that favors a handful of VCs while the “majority have largely underperformed.”
Will investors be more measured and discriminating in their search for promising ventures this year? For founders, what is in store for them as the year unfolds and how should they be managing their businesses to improve growth, increase their visibility to investors, and to essentially weather this uncertainty?
We were pleased to host three seasoned startup advisors and investors:
Bryan Duarte - Bryan Duarte is a Social Venturist, Serial Entrepreneur, a Professional Engineer and has over 30 years of experience in the Energy Industry. He is the Managing Partner at BlackTech Capital and our newest EIR at Altitude Accelerator.
Glenn Nishimura - Glenn Nishimura is the Principal and Chief People Strategist at Nishimura Consulting, based in Toronto, Canada. As an experienced advisor, consultant, and mentor, he helps early and growth stage startups and scale-ups across North America, Asia, and Europe to build and optimize their teams, culture, and people operations.
Olga Cruz is a Senior Associate at impact investing firm Good & Well. She leads the impact management practice and sources, analyzes, and invests in early-stage Canadian businesses. Her prior roles involved investing in healthcare and agricultural innovations. She also dedicated her efforts to supporting entrepreneurs in conflict-affected regions, guiding them towards investor readiness.
Check out the full article on Forbes: https://www.forbes.com/sites/hessiejones/2024/01/29/is-2024-the-year-of-investor-restraint-and-startup-resilience-eight-experts-weigh-in/?sh=65a49935678a
The world bank came out with the following prediction for 2024:
“Global growth is projected to slow for the third year in a row—from 2.6% last year to 2.4% in 2024, almost three-quarters of a percentage point below the average of the 2010s. Developing economies are projected to grow just 3.9%, more than one percentage point below the average of the previous decade.”
They are dubbing it the “Weakest Half-Decade Performance in 30 Years"
This is a so-called recession that never really came (because of low unemployment, despite higher interest rates) there are indications similar to what we’ve seen at the start of the Ukraine/Russia war (2 years ago) that set off an economic fallout that saw the steep fall of Crypto and NFT and, in parallel massive investment pullout from overvalued startups that received millions in funding during the pandemic.
This time while the global economy is in a better place, mounting geopolitical tensions. Innovation will take a hit as we’ve already witnessed at the end of 2023 with rising tech layoffs
“Amazon saw the most workers laid off in 2023 (27,410 workers) followed by Meta (21,000), Google (12,115) and Microsoft (11,158).” This continued as we ventured into the new year with more layoffs from Big Tech
In the fall of 2023 David Wright, Investment Analyst remarked, “Investor returns in the VC industry have not always paid up for the risks involved in private investments.”
Wright noted that in the last 4 decades, VC fund performance had its ebbs and flows with the mid-to late nineties being the standout period. “The average returns from VC investments have consistently hovered around 9%, comparable to public markets,” but Wright highlights that the more telling metric is the “1.8% returns indicating that there is a disproportionate performance that favors a handful of VCs while the “majority have largely underperformed.”
Will investors be more measured and discriminating in their search for promising ventures this year? For founders, what is in store for them as the year unfolds and how should they be managing their businesses to improve growth, increase their visibility to investors, and to essentially weather this uncertainty?
We were pleased to host three seasoned startup advisors and investors:
Bryan Duarte - Bryan Duarte is a Social Venturist, Serial Entrepreneur, a Professional Engineer and has over 30 years of experience in the Energy Industry. He is the Managing Partner at BlackTech Capital and our newest EIR at Altitude Accelerator.
Glenn Nishimura - Glenn Nishimura is the Principal and Chief People Strategist at Nishimura Consulting, based in Toronto, Canada. As an experienced advisor, consultant, and mentor, he helps early and growth stage startups and scale-ups across North America, Asia, and Europe to build and optimize their teams, culture, and people operations.
Olga Cruz is a Senior Associate at impact investing firm Good & Well. She leads the impact management practice and sources, analyzes, and invests in early-stage Canadian businesses. Her prior roles involved investing in healthcare and agricultural innovations. She also dedicated her efforts to supporting entrepreneurs in conflict-affected regions, guiding them towards investor readiness.
Check out the full article on Forbes: https://www.forbes.com/sites/hessiejones/2024/01/29/is-2024-the-year-of-investor-restraint-and-startup-resilience-eight-experts-weigh-in/?sh=65a49935678a
Creators and Guests
Host
Hessie Jones
Advocating for #DataPrivacy, Human-Centred #AI, Fair & Ethical Distribution 4 all; @forbes she/her; Developing Data Privacy Solutions https://t.co/PudK3nLMU9
