Venture Capital Trends in 2024: Adapting to Market Shifts

Forum Ventures has released a report analyzing the state of pre-seed and seed venture capital in 2024, offering insights for the upcoming year. The survey of 150 North American venture capitalists (VCs) highlights that founders who adjust to the evolving investment climate are more likely to secure funding, despite the market slowdown. While 2024 levels fall below those of 2016, there is cautious optimism for 2025.

Artificial intelligence remains a leading focus, with 37.3% of VCs investing in AI companies. However, the emphasis is shifting towards industry-specific applications. Healthtech and fintech also continue to attract significant investment. A staggering 70% of investors prioritize the founder more than other factors in their decision-making process.

Bridge rounds have increased, reflecting extended times between funding rounds. Texas shows substantial growth in pre-seed and seed investments, reflecting a geographic diversification in the market.