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- ♞ Trends in VC Industry: Investment Trends
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Lately, I’ve had lots of founders complaining about perceived changes in the fundraising model and method, so today I wanted to highlight some of these trends so that you don’t feel caught off-guard when talking to investors and seeing a market that is substantially different from what you may have seen in the past or expected to see based on other people’s stories or their fundraising experiences. This issue will focus specifically on investing trends.
Yes, everyone is investing in AI. Depending on the source, between 51% and 58% of all VC money is going into AI companies, which means that you have a significant edge when raising venture capital if you are in this space.
Defencetech is on the rise. You may have heard about Anduril or Palantir in the news. Investors are big on defence tech and have been since 2023. They are now investing over $3B/year into the industry, and that number is likely to continue growing.
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Deals are getting larger but harder to come by. Investors are starting to abandon the spray-and-pray strategy that defined venture capital for the last 20 years. Instead, they are making more concentrated bets, understanding that strong capitalization can provide opportunities for companies to gain significant advantages in an age where AI and model development have become the key to creating a strong moat.
The creator economy is still a hot industry, but it’s nearly impossible to get traction. Investors still believe that the social selling that has captivated Asia will become the norm in the Western world. This means they are willing to take bets in this industry, but to date, these bets remain very calculated. It’s difficult to break into the industry, but once you do, the capital can be abundant.
IPOs are dead. This is fundamentally the biggest problem with the industry. The volatility of markets has caused many companies to delay IPOs, which means that capital isn’t flowing back into private markets and going to startups. The entire cycle is breaking, and this is why it can feel so hard to raise today.
Have you witnessed these trends? |
The key to a $1.3T opportunity
A new real estate trend called co-ownership is revolutionizing a $1.3T market. Leading it? Pacaso. Led by former Zillow execs, they already have $110M+ in gross profits with 41% growth last year. They even reserved the Nasdaq ticker PCSO. But the real opportunity’s now. Until 5/29, you can invest for just $2.80/share.
This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals. Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC.
Are you looking to grow your business? Here is how I can help:
📱 Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)
Onwards and Upwards,
