NEWS: VC Funding for Startups Excepted to Bloom in 2024





Are you a startup owner or enthusiast? If you are - and you possess an attractive proposition, get ready for potentially exciting VC funding opportunities this year.  

Venture Funding Statistics



The few years leading to 2023 brought tremendous attention to startups. It was the year of flourishing tech innovations and big-pocket venture capitals! Companies like OpenAI and Epic Games went home smiling, with billions of dollars to their names. Countless other companies settled with millions of dollars from diverse funding rounds.  

In total, it is estimated that the global startup market received funding to the tune of USD 462 billion in 2022 alone. This figure was nearly doubled a year earlier when startup funding hit an all-time high (ATH) of USD 643 billion. 

Sadly, the good times lasted until early 2023. 

Despite the optimism of entrepreneurs, funding for the 2023 fiscal year grew fewer and fewer. In addition, investors brave enough to participate in funding rounds were seen to cut down significantly on their generosity.   

Why The Dip In Venture Captial Funding for 2023?

There are several reasons why venture funding in 2023 took a big hit. The first and most prominent of these was high interest rates. 

The problem really began in 2022 when inflation rose to a staggering 6.4%. 

Central banks across the globe put a 2% peg on inflation. Any rate above this level becomes a concern. Moreover, a high or sudden increase results in a difficult economic situation and puts stress on consumers.  

Monetary authorities like the European Central Bank (ECB), the US Federal Reserve, and the UK Bank of England all reportedly responded to the 2022 inflation by increasing interest rates within their respective economies. These increases were made several times through the year 2022 to curtail the issue of rising inflation.  

Increasing interest rates might have saved the price of consumer goods from its continuous upward climb. However, such decisions impact the cost of mortgages, loans, and credit cards. This directly impedes the interest and participation of investors in startup funding. 

VC Funding Signs in 2024


As we started out saying, VC funding for startups will likely increase in 2024. Here are some of the signs. 

  • Economic Rebound
The previous section explains how rising inflation in 2022 caused a slow economy in many countries. Governments and central banks responded by increasing interest rates. Their actions brought the rising price of commodities to a halt but at the expense of investor interest. 

Thankfully, the tides are returning back to normal today. 

It took financial regulators almost an entire year (from early 2023 to early 2024) to salvage the inflation crisis which began in 2022. Nevertheless, the careful execution of their plans and strategies has proved successful. 

For instance, the inflation rate in the US fell to 3.4% at the end of the 2023 fiscal year. This figure has now gone further down to 3.1% - based on statistics from the first two months of 2024. 

  • AI Advancement Streak  

Considering that global economies are having a bounce back, investors can now shift their focus to tech startups - their all-time favourite. 

AI tools in particular are doing a three-year streak of rapid technical advancements - in addition to their availability and ease of use. Startups across the globe are fast-utilising this situation. So far, there's been a huge push on the limit of business creativity and innovation.  

This situation is bound to create a positive ripple among startups globally, with the potential to increase company valuation, operational processes, and customer experience. 

  • Potentially Lesser Bridge Rounds
The deficit in funding activities last year was huge, but it doesn't mean nothing interesting happened. For many startups, the thriller was in the form of bridge rounds. 

Bridge rounds identify equity financing for startups which have already received funding. These rounds offer small sums to companies that have raised in a major funding round and intend to organise another major round soon. 

The potential for bridge rounds to reduce in 2024 is high. This will likely give way to seed rounds, which represents a chance for early-stage startups to see the light. 


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