THE BIG BOOK OF

VENTURE CAPITAL

Q3 2024

IMAGE FROM ADOBE FIREFLY

Prompt given - “The Good, the bad and everything in-between.” Style
prompt was Comic book.

1
 Disclaimer

The contents of this presentation is solely for information purposes only and Other important considerations:
should not be considered to be legal, tax, investment or other advice. The
contents should not be considered as advice or a recommendation to • A conscious effort has been made to source meaningful content from
investors or potential investors in respect of the holding, purchasing or selling broadest possible sources, though a universal coverage is impossible.
of any financial instruments.
• Data in the VC industry is always lagged.
• Readers should carefully analyse all data and graphs since these are from
The contents in this presentation - is sourced and complied from multiple 3rd 3rd party providers. These data and graphs can vary significantly w.r.t their
parties, is provided in summary form only and does not purport to be definitions (example - pre-seed can mean different definitions for providers),
complete. No representation or warranty, express or implied, is made as to data scope (example - Tech M&A numbers from multiple data providers has
the fairness, accuracy or completeness of the presentation and no ReLi different values), geographical context, or timeline (example - not all graphs
Energyance should be placed on it. represent same data timelines).
• Source article is linked to image/graph on each page. Readers are strongly
Projections, views, statements, or analysis may be based on subjective encouraged to go through the complete version of the article/report/blog
assessments and assumptions and they should not be ReLi Energyed upon as by following the image/graph link.
an accurate prediction of future performance. This presentation also contains • The goal of this deck is to focus on the strategic aspects of venture capital
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

forward‐looking statements. Such forward‐looking statements involve known relevant to founders, GPs, and LPs (i.e., valuations, market dynamics,
and unknown risks, uncertainties and other important factors. Furthermore, fundraising, portfolio construction, performance, etc.). This alone was a
certain forward‐looking statements are based on assumptions or future events gigantic task. Hence, individual investment areas (ClimateTech, DeepTech,
which may not prove to be accurate, and no ReLi Energyance whatsoever SaaS, HealthTech, etc.) and their dynamics are not covered.
should be placed on them.

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 Index

1 Author's Note - Venture Ecosystem Snapshot 6 Startup Exits This PDF contains interactive elements.
Most graphs are clickable and are
• Exits data linked to source articles/posts.

2 ‘TheOnePoint’ Podcast Snapshots • IPOs

• Tech M&As
3 Past Ecosystem Reports • Secondary markets
• The Big Book of Venture Capital Q2 2024
• The Big Book of Venture Capital Q1 2024 7 Talent
• The Macro in Venture • Startup talent
• The Big Book of Venture Capital - 2023 • Venture capital talent
• Diverse by Default

8 Limited Partners

4 Startup Fundraising • Venture funds fundraising

• Startup fundraising data • Corporate Venture Capital (CVCs)
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• Deal dynamics • Other LPs

5 Startup Valuations and Performance 9 Venture Business

• Valuations data • Venture asset class performance
• Unicorns • Venture fund management
• Startup performance • Venture business

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 Detailed Index

Author’s note - Venture Ecosystem Startup Fundraising • Asia Fundraising Data by Stage
Snapshot • Asia Deal Count
Fundraising Data & news • Europe Fundraising Data
TheOnePoint Podcast Snapshots • Global data - CB Insights • Europe Fundraising Data by Stage
• Ashish Kumar • Global data - Crunchbase • UK Funding by Source
• Gabriel Shin • Country fundraising comparison • AI Funding Buzz
• Guy Conway • Global - Development and Growth Score • U.S. VCs more likely to invest in AI
• Ihar Mahaniok • Global data by Stage (CrunchBase Data) • AI Funding is Concentrated in the U.S.
• Johanna Broell • Global data by Stage (Dealroom Data) • AI vs. non-AI
• Laura Laringe • Regional Deal Share by Deal Stage • Diverse Interests of Global Investors
• Manu Pillai • Global data - Deal Share Percentage • What is the Most Funded Sector
• Matias Machodo • Mega Rounds as % of Total • Big Tech is the New VC in Town
• Paul Miller • Mega Rounds by Geography • How Fast were Unicorn Founders Able to Raise
• Shila Nieves Burney
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• U.S. Fundraising Data • Vacations and Deal Closing

• Til Klein • U.S. - Deal Count and Deal Share • Founders can't be Raising Every 18 Months
• North American Data (by Stage) • U.S. Venture Debt Data
Past Ecosystem Reports • U.S. - Deals (Long- and Short-term Trends) • Venture Debt Nuggets
• The Big Book of Venture Capital Q2 2024
• U.S. - Deal activity (Dealroom) • Good Signs from LPs
• The Big Book of Venture Capital Q1 2024
• U.S. VC Backed Inventory • Future Expectations from VCs
• The Macro in Venture
• U.S. Top 10 metros • Geopolitics is Pushing Defence Startups
• The Big Book of Venture Capital - 2023
• Bay Area Lossing Grip at Earliest Stages? • VC Dealmaking Indicator
• Diverse by Default
• Asia Fundraising Data • Capital Demand to Supply 4
 • Big Tech in Europe • Seed-Bridge to Series A • Europe - Unicorn Formation
• Decline in Active Investors • Liquidation Preferences • Moving to the U.S. increasing likelihood
• Active Investors Mostly at Early Stages • Pay-to-Play • GenAI startups attaining Unicorn Status
• Pre-Seed Thoughts • Unicorn Valuations yet to Reprice
• Seed Thoughts Startup Valuations & Performance • Are Some Valuations justified?
• Seed Thoughts-India • Europe - Unicorn Valuations yet to Reprice
• Series A Thoughts Valuations data • Unicorn Exit Efficiency
• Fundraising Advice • U.S. Valuation by Stage and by Series • Odds of Becoming a Unicorn and Exit
• Selection Criteria • U.S. YoY change in valuations (by stage) • Unicorn KPIs
• More Nuggets • U.S. Data by Quartile • How long does it take to achive Unicorn status?
• U.S. Valuations Step-ups
Deal dynamics • U.S. Valuations vs round size Performance
• U.S. Deal Size - by Stage and by Series • U.S. Data (from Carta) • Where are 2019 startups now?
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• U.S. Deal Size by Series • Europe Data • SaaS revenue growth

• Deal Size comparison U.S. vs Europe • A Framework for Valuations • Public SaaS revenue growth
• Lead Investor Check Size • Seed Valuations Aren’t valuations? • Software valuations close to lows
• Up- and Down-rounds • Seed Valuations are Too High • Shinny things aren't always valuable
• Dilution (U.S.) • Nuggets not to be missed
• Redemption Rights Unicorns • Northvolt
• Safe Dynamics • VC-backed unicorn creation
• Time Between Financing Rounds • Unicorn Formation (from CB Insights)
• Seed to Series A • More public than private unicorns 5
 Startup Exits • Tech Pipeline • Startup Age at Acquisition
• India King of IPO Boom • Price Paid vs. Capital Riased
Exit data • U.S. - Tech IPOs • Capital Riased at M&A & Acquisition Ticket
• Global Data (CB Insights) • VC Backed Startups Going IPO • M&A Who's Winning
• Global Data (PitchBook) • Impact of U.S. Election • Takeover Candidates
• U.S. Exit Data • Long Journey to Become Profitable Post-IPO
• U.S. - Short vs Long Term Trends in Exits • Performance since IPOing Secondary markets

• Asian Exit Data • Small-Scaled IPOs • New Funds and Funadraising

• European Exit Data • Premiums and Discounts

M&As • Bid-Ask Spreads
• Best Exit is Still an IPO
• Global Acquisition Data (including Tech) • Demand
• Exits are increasingly loss making
• Global Acquisition Data (Crunchbase) • How to do Secondaries
• Exits increasingly loss making at Seed stage
• Global Startup M&A Data (over Time) • Case for Secondaries
• Generalist vs Specialist VC
• U.S. M&A Data
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• Factors aiming to reignite VC exit

environment • U.S. - Startups Buying Startups Talent
• Nuggets not to be Missed • PE Buyers are Knocking on the Doors
• PE Dry Powder can Unlock a lot of Acquisitions Data
IPOs • PE is the New VC • Compensation Data
• Global IPO activity (inlcuding Tech) • Scope Deal and Acqusitions
• King of Market Size • Top Acquirers by Company & Region Startup talent
• Sectoral dynamics • Regular Players aren't Doing M&A Anymore • Layoffs

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 • Headcount Growth Venture capital talent • UK VC Dry Powder
• Remote Jobs (Product) are Decreasing • Junior VC Talent • Getting More Private Capital into VC Asset Class
• Being a Founder is Hard • Talent Churn • VC Firms Returning Capital or Reducing Fund
• Strenghts-Weaknesses that Sets Apart • Talent Transition Size
• Are You Meant to be a Founder • Leanring about VC • Nuggest Not to be Missed
• Burnout • LP Advice
• Manager Level Talent in Startups is Limited Partners
Struggling Corporate Venture Capital
• Salaries in Product Managment Venture Capital Fundraising • Global CVC Data
• Tech Alumni Mafia • Global VC Fundraising Data • U.S. CVC Data
• Most Alumni Founders Coming from • U.S. VC Fundraising Data • CVC Units Getting into Action
Product or Engineering • U.S. vs Europe
• Startup Alumni Networks Building New • Experienced firms winning the fundraising game Other LP nuggets
Startups • Larger Funds Winning the Fundraising Game • Goverment LPs Playing Their Part
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• Harrasment, Diveristy, and More • First-time Funds Dwindle • Family Office - Growth in India
• Repeat Founders and Unicorns • Global Megafund VC fundraising • Family Office - The Indian Context
• Employee Equity • U.S. Megafund VC fundraising
• Employee Equity - UK • U.S. VC Dry powder continues to grow Venture Business
• Indian Unicorn Founders are Increasingly • Europe VC Fundraising
Homegrown Venture performance
• Europe VC Fundraising by Region
• Nuggest Not to be Missed • Distributions
• Europe VC Fundraising by Type of Investor

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 • DPI Data • KPIs to Collect from Startups
• DPI and Performance Timing • Advice for GPs on Portfolio Construction
• VC vs Other Asset Classes • Optionality in Venture Funds
• Smoothed Return Differ • Chief Legal Offciers and Rise of IR Personnel
• Venture Returns Muted, but so was Private
Equity Venture Business
• Startup Failure Same Among Top and • Venture Fund Management Fees Explained
Average Fund • Zombie VCs - Exisiting but Limited Investing
• Correlations, Returns, and Yeilds • Trends in VC Business
• Big vs. Small Funds • Illiquidity is a Feature
• What to Expect in the Next 3-5 Years • What Venture is Becoming
• Peformance benchmarking U.S. vs Europe • Case for Solo GPs
• Peformance Benchmarking Europe • Partner Only Funds
• IRR discussions • Angel Investing Isn't the Same
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• Performance Difference is Staggering • Building Brands

• Seed Fund Evaluation and Luck Driving • Fund Structuring and Oversight
Returns • U.S. Continues to Pull
• Nuggets not to be Missed • VC Fundraising Story
• Nuggets not to be Missed
Venture Fund Management
• Prun to cultivate the winners
• Reserves and Recycling
End
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 SECTION - A NOTE FROM THE AUTHOR

Venture Ecosystem Snapshot

“The Good, the Bad, and Everything in-between.” Other fundraising trends:
• AI Boom: One in three VC dollars now flows into AI, with Silicon Valley
capturing 41% of U.S. AI funding.
With just two months left in 2024 (or really 1.5, because who’s working • Big Tech in VC: Big Tech is emerging as a major VC player, shifting
through the holidays?), I focused the Q3 Big Book on spotting any big shifts venture dynamics as they invest heavily.
or breakout trends. The result? Not much has radically changed. Most • Venture Debt: U.S. tech lending is hitting record highs, with 75% aimed
patterns from Q1 and Q2 continue: a bit of the Good, a bit of the Bad, and at venture growth, while Europe’s venture debt market is booming,
almost Everything In-Between. offering an alternative to VC equity.
• Active Investors: Investor activity has dropped to 45.5% of 2021 levels,
with most focusing on early-stage investments.
Startup fundraising trends
• Seasonal Patterns: U.S. VC activity peaks in March, while Europe sees
Global venture funding took a downturn, falling back to 2016/17 levels with
summer slowdowns, especially in France.
a 15-20% quarter-over-quarter drop, breaking a growth streak. Notably,
• Demand-Supply Imbalance: Late-stage deals face a shortage in capital
Seed and Angel-stage investments declined significantly, while late-stage
supply, while early-stage funding shows a slight surplus.
deals held steady.
Overall, the global VC landscape reflects a cautious investor approach, a
surge in AI interest, and shifting power dynamics with Big Tech’s growing
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

In the U.S., while venture investment dipped 10-15% in Q3, total deal value
presence.
is set to surpass $175.2 billion for 2024, with cities beyond Silicon Valley, like
Denver and Atlanta, gaining traction. The U.S. remains dominant in mega-
Deal Dynamics
rounds, capturing almost triple Asia's volume. In Asia, fundraising hit its
U.S. median deal sizes are up, and they continuously outpace Europe: Pre-
lowest since 2018, with drops across all stages. Q4 may signal whether the
Seed/Seed deals are 1.7x larger, early-stage 3x, and late-stage 1.7x larger.
market has bottomed out. In Europe, venture deal activity dropped
Globally down rounds in 2024 mirror 2023 but vary by stage. In the U.S.,
significantly, with Q3 deal volume down 36% quarter-over-quarter. European
early-stage down rounds dropped, while late-stage spiked, with nearly half
fundraising is set for its most challenging year since 2018.
flat or down. Companies last funded in the 2021 bubble are most affected,
with bridge financings seeing more declines than primary rounds.

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 SECTION - A NOTE FROM THE AUTHOR

U.S. dilution hit 5-year lows early in 2024; late-stage fell to 8%, while early- countries now hold over 70% of Europe’s unicorns. However, of 139 active
stage held around 19%. Liquidation preferences fell for early-stage deals but unicorns in Europe, over half are due for revaluation, with projected
rose for late-stage, with 13% of late-stage financings in June having 1x+ potential declines of up to 22% in a bear market scenario.
multipliers—the highest in five years, enhancing investor protection.
Exit trends
U.S. valuations Global exits, including M&As and IPOs, showed no huge recovery in Q3,
For valuation watchers, 2024 brings good news. Valuations have risen and exit dollar volume hit its lowest point since early 2018—a still
consistently across all stages. In H1, the VC market saw substantial gains, concerning sign for VC markets. Annual global data suggests 2024 will fall
driven by a surge in Q2 pre-money valuations. In the U.S., Early-stage (Seed short of 2023 in both exit counts and values, dashing early-year
to Series B) valuations climbed up to 30% from their bottoms. However, expectations. Regional Highlights
digging deeper, another trend is visible. Valuations have improved recently, • U.S.: Mixed signals with exit counts down but dollar volume set to
but growth is concentrated in the top quartile. Top valuations surged in H1, outpace 2023, hinting at a possible rebound in 2025.
while median and bottom quartile values stayed flat. So, while overall • Asia: After starting 2024 at a low, exit volumes have begun to climb over
growth makes headlines, the top end drives the recovery. the last two quarters, though values still lag behind long-term trends.
• Europe: Finally showing recovery signs, with €26.2 billion in exit value by
Unicorns Q3, nearly half from Puig’s IPO. Even excluding Puig, Europe is on track to
Unicorn formation surged 50% in Q3, with 24 new unicorns—more than half surpass last year’s total.
of them in AI, which now leads both in funding and unicorn creation.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Generative AI startups are reaching unicorn status in record time, averaging VC exits are increasingly loss-making, with less than 1X exits at their highest
just 3.9 years, 45% faster than others. With 1,420 private unicorns, the IPO since the 2007-09 crisis. Seed-stage exits suffered the most, with 85%
backlog keeps growing. Despite strong U.S. public markets in 2024, private startups incurring losses, while other stages are back to pre-pandemic
unicorns now outnumber public ones, highlighting the delay in public norms. Looking forward, investors believe lower interest rates, stock market
listings. Europe’s unicorn count has expanded fourfold in five years, driven gains, quality IPO filings, and realistic valuation resets are crucial for
by ample capital, low interest rates, and a maturing VC landscape. Just five reigniting the exit environment.

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 SECTION - A NOTE FROM THE AUTHOR

IPO Trends or younger. The exit landscape follows a power law, with 71% of deals
Q3 2024 saw an 11% quarterly rise in all IPOs (including Tech), led by the yielding low returns. Only 1% achieve unicorn-like 100x multiples. For
U.S. and India, with India setting a 20-year record. Despite economic acquired startups, the median capital raised is $10-$50 million. Acqui-hires
concerns, the U.S. remains the top IPO market. Even with this overall (under $5 million raised) make up 27% of acquisitions, while only 1% are
resurgence, Tech IPOs remain scarce, with the 2022-24 period lagging 'super scalers' with over $1 billion raised. These trends underscore an
historically. Only 8 venture-backed IPOs launched in Q3, mostly biotech, evolving M&A landscape where scale, selectivity, and strategic buys define
marking the lowest proceeds this year. High hopes for a stronger IPO the market.
market in 2025 depend on easing economic uncertainty. Most major tech
IPOs went public pre-profitability but show resilience - 10 of the 15 largest Secondaries
tech IPOs since 2022 have gained value, driven in part by AI’s growth. The median discount to the last primary round has shrunk to a range -12%
to -21%, with continuous upward movement. Meanwhile, top-tier
Global M&A Trends (including Tech) companies (75th percentile) saw a 10%+ median premium over their last
The U.S. FED’s recent rate cut has fueled optimism for 2025, potentially funding round, marking four consecutive months of positive gains—hinting
accelerating M&A activity as buyers reconsider previous deals. Globally, that the reset phase may be winding down. The bid/ask spread closed Q3
overall M&A deal value (including Tech) has risen 27.6% year-over-year, with at a two-year low of around 5%, down from July's 16% spike, suggesting
deal count up 13.3%. Fortune 500 tech startup acquisitions have shifted stronger buyer-seller alignment and increased transaction likelihood,
from volume to value. After peaking in 2021, annual deals dropped to 111 signaling improved market stability.
in 2023, but total investment rose to $62.1 billion, reflecting a focus on
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

fewer, larger acquisitions. Startup talent

Tech layoffs have eased from 2023 but are still set to surpass 2022. Unicorns
Tech specific M&A trends are cutting back, with headcount growth down to 10% from a 75% peak in
Startup-to-startup acquisitions now dominate U.S. VC-backed M&A, 2022. Remote work flexibility is also tightening, as Big Tech firms like
accounting for 39% of deals—an all-time high, driven by limited IPOs and Amazon return to full in-office schedules, signaling a shift back to pre-
exits. In the U.S., PE buyouts of VC-backed startups are climbing, pandemic norms. In startups, leadership gaps are evident: 63% of
representing 22% of exits by Q3 2024, with momentum expected to grow employees believe most managers aren’t prepared, and over a third lack in
in the middle-market space. Startups are generally acquired within six years, supporting team career development—a critical shortfall in leadership.
with 46% of acquisitions targeting high-growth companies aged five years
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 SECTION - A NOTE FROM THE AUTHOR

VC Fundraising proving that top performance is critical in today’s market. Meanwhile, 24%
Global VC fundraising in 2024 may match last year’s volume, but the of active VCs have made only one investment since 2023, potentially
number of funds has halved, dropping from 2,000 to under 1,000 by Q3. signaling “zombie VCs” unlikely to raise again, and less ideal as long-term
Dominated by a few large funds, smaller players face increasing pressure partners for founders. In solo GP trends, the U.S. market is notably more
worldwide. supportive than Europe, where solo managers face greater cultural and
ideological hurdles.
In the U.S., fundraising is on track to surpass 2023 and pre-pandemic levels,
though fund count will hit a decade low, with capital concentrating among
top-tier firms. Billion-dollar funds now represent 34% of all raised capital,
nearly doubling their share from last year. Similarly, European VC As we near November, it’s unlikely we’ll see major shifts in venture capital
fundraising rose to €17.6 billion, led by larger fund sizes and concentrated trends for the rest of 2024. All eyes are on the U.S. Presidential Election,
fundraising in the UK and Ireland. Experienced investors claimed nearly expected to calm the system’s pent-up anxiety. While venture capital is a
65% of Europe’s capital, the highest in a decade. First-time funds are long-term game and firms are prepared, the real pressure points—startup
struggling, with closures down to a seven-year low, at just a quarter of 2021 exits and startups investments—have yet to significantly recover. The
levels. industry is eagerly looking to 2025 for a market revival. While the pace of
recovery is uncertain, no one wants a repeat of the 2023-24 stretch. Here’s
Record-high dry powder remains largely unused, as large funds are slow to to better days ahead!
deploy capital in early-stage deals. In Europe, under-allocated institutional
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

investors leave VC managers dependent on international capital, limiting

local startup growth and innovation.

Venture Business
Time to reach 1x DPI has shortened but still averages 7.5-9.5 years,
depending on whether the fund is top quartile or median. Notably, loss Rohit Yadav
Author - The Big Book of VC
ratios are almost identical between top-quartile and all venture funds—what
truly matters is capital invested in “far-right” high-return wins. Many
interesting discussions happened regarding Big vs Small VC funds. Moving
from the top quartile to the top 5% delivers a notable 48-point IRR boost,
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 Thanks to ‘TheOnePoint’ podcast guests

For the Q3 version of the Big Book, I carve and test a

different route to presenting insights. Instead of VC
quotes, I added snapshots from my recently kicked-off
project, ‘TheOnePoint’ podcast (Link).
Ashish Kumar Gabriel Shin Guy Conway Ihar Mahaniok
The vision of TheOnePoint is to be Focused (on niche CoFounder and GP Co-Founder Co-Founder & Author Managing Partner
topics), Explorative (deep analysis), and Limited Fundamentum Landscape Koble, Moneyball Geek Ventures
(explore only 3 core topics per season).

Three core topics are:

Pre-Seed ClimateTech Fundraising

Johanna Broell Laura Laringe Manu Pillai Matias Machado
Diversity and Tech for Good Co-Founder, CEO Co-Founder, CEO Founder, CEO Co-Founder, COO
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Carbonsate reLi Energy CarbonBridge Leap Photovoltaics

AI, Data, and Research in the Venture Business

Also, select intriguing topics were covered like

‘Growth stage investing in India.’

Paul Miller OBE Shila Nieves Burney Til Klein

Managing Partner and CEO General Partner Founding Partner
Bethnal Green Ventures Zane Venture Fund identity.vc

Podcast guest names listed alphabetically. 13

 SECTION - CONVERSATION SNAPSHOT

“Growth stage VC investing in India” with Ashish Kumar from Fundamentum

In this episode of “TheOnePoint" podcast, we discusses the evolving Regarding exits, Ashish explains that IPOs will be the primary exit strategy
growth stage venture capital (VC) landscape in India, highlighting the in the next five years, with the potential for large M&A deals being limited
country's ascent as a major destination for VC funding in the Asia-Pacific for now. He stresses the importance of founder-market fit and going all-in
region. Ashish an entrepreneur-turned-investor, sheds light on the maturing on solving problems for long-term success.
growth stage investment ecosystem in India.
In closing, Ashish recommends the book Outliers by Malcolm Gladwell,
Ashish shares insights on how Indian startups, particularly in the growth which has influenced his perspective on success, opportunities, and the
stage, are driven by ambitious founders aiming to build multi-billion-dollar importance of being the right fit for a role.
companies. He emphasizes the growing interest of both domestic and
international investors in India's venture ecosystem. Factors like India’s

“
geopolitical positioning, manufacturing expansion, and technological
advancements contribute to this growth. Sovereign wealth funds, India venture capital market actually did
corporates, and foundations are increasingly participating in the Indian not see domestic LPs for a long period of
growth story. time. It is only in the last five years that that
number has increased significantly. If you
The conversation delves into the rise of domestic Limited Partners (LPs) and look at data, the domestic LP participation
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

how their involvement has surged in recent years, complementing the would be in single digit, maybe 4%, 5 % of
presence of international investors. Ashish points out the clear gap in all the money that comes into venture capital Ashish Kumar
growth stage investment and anticipates a rise in funds dedicated to CoFounder and GP
funds in India until last five years. That
this segment. Fundamentum
number right now of all the new capital is
He outlines the typical size of growth stage deals, the increased focus on
almost close to 20 -30%.
profitability alongside growth, and the types of investors attracted to Indian
growth companies. Ashish also discusses the diversification of business
areas, with new sectors like deep tech and climate-focused startups gaining
traction, alongside traditional sectors like SaaS, fintech, and consumer. 🎧 Podcast Link
14
 SECTION - CONVERSATION SNAPSHOT

“AI and Data in the venture business” with Gabriel Shin from Landscape

In this episode of TheOnePoint podcast, host Rohit Yadav explores the They also discuss the future of venture capital, including the increasing
growing role of artificial intelligence (AI) in the venture capital (VC) business commoditization of startup discovery and evaluation through AI tools.
with guest Gabriel Shin, co-founder of Landscape. Gabriel introduces Gabriel believes that while AI will improve the efficiency of venture firms, it
Landscape as an AI operating system designed to streamline the venture won't replace human investors, as the real value lies in relationship-building
capital workflow by leveraging data and automation to improve efficiency. and portfolio management. Lastly, Gabriel shares insights on maintaining
Initially focused on venture capital, Landscape aims to expand its reach to focus and balance in the demanding startup environment, emphasizing the
other private market sectors, such as private equity. Gabriel shares his importance of mental health and disconnecting from the digital world to
background in financial services and startups, explaining how his maintain clarity.
experience led him to co-found Landscape, which seeks to address
inefficiencies in the venture capital value chain. The episode concludes with optimism for AI's transformative potential in
venture capital and a look ahead at how Landscape can continue driving
The discussion then shifts to the broader AI landscape, with Gabriel and efficiency in the VC ecosystem.
Rohit examining how AI applications have evolved from experimental use
cases to real-world implementations. Gabriel compares the current AI
cycle to industrial revolution, where human oversight is still crucial,
“ I think ultimately tools like Landscape, makes
investors more efficient, makes them, I'm going to
particularly in sectors like Finance. He argues that while AI is advancing,
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

achieving full autonomy with 100% accuracy remains a challenge.

say smarter because they just have more insights,
more knowledge…time is really scarce and so the
Gabriel elaborates on Landscape's role within the venture capital chain, ability to spend your time effectively with the
particularly in the investment phase, where the platform helps investors right founder is instrumental in either being able
Gabriel Shin
source and evaluate potential startups using a data-driven approach. Rohit to invest in that company or you being able to Co-Founder
asks how Landscape differentiates itself, given that many firms rely on the add value to help them to get to the next stage of Landscape
same public data sources like LinkedIn and Crunchbase. Gabriel explains funding or you ultimately achieving an exit.
that Landscape’s edge lies in aggregating and filtering data to save time
and provide investors with relevant insights, allowing them to focus on
building relationships and securing deals. 🎧 Podcast Link
15
 SECTION - CONVERSATION SNAPSHOT

“AI and Data in Venture Business” with Guy Conway from Koble

In this podcast episode, I host Guy Conway, co-founder of Koble, to using data from the US, Europe, and Israel. Over the past four years, Koble
discuss the intersection of AI and venture capital (VC), particularly focusing has shifted from selling their algorithms as a SaaS product to deploying
on how AI is reshaping the VC industry. Rohit begins by noting how AI has capital based on their AI models. Their goal is to automate the entire
rapidly transformed multiple sectors, including venture capital, where AI is investment process and eventually move into later-stage investments,
revolutionizing deal sourcing and evaluation processes. Guy explains that secondaries, and other financial products, transforming the VC landscape.
Koble was founded four years ago to address the inefficiencies in startup
investing, which often rely heavily on human intuition and gut feeling. In personal section, Guy reflects on challenges of building Koble,
Despite the impressive overall returns of venture capital, the median emphasizing importance of his team, advisors, and a shared passion for
returns of funds are much lower, and consistency is lacking. solving the problem. Despite initial skepticism from traditional VCs, Koble
has made significant progress, and Guy remains optimistic about future of
Guy elaborates on how Koble uses AI to remove human bias from AI in VC. The episode concludes with Guy sharing a quote from football
investment process, focusing on startup discovery and evaluation. He notes manager Marcelo Bielsa: "A man with new ideas is a madman until his
that while many VCs claim to use AI, they typically focus only on ideas triumph," highlighting perseverance required to push innovative
discovery phase, as investment selection is more complex. Koble, ideas forward.
however, strives to automate entire investment decision process without
need for human intervention, aiming to develop an algorithmic VC model.
“ Lots of VCs will tell you that the VC investment
can't be automated, saying - you can use AI as a
The conversation then shifts to how AI affects the traditional VC model and
the roles within it. Guy highlights that junior roles in VC might shift from great discovery tool, but when you get into
discovery and due diligence to relationship-building, as AI takes over selection and further down line, it becomes
data-driven tasks. He discusses how quant VCs—AI-driven venture capital impossible and you need humans to do the job….
firms—could disrupt the industry, particularly by enabling firms to manage I’m convinced it is possible. It's very rare that
large portfolios with smaller teams, similar to how hedge funds operate. Guy Conway
the innovation comes from within industry…In Co-Founder
venture, the introduction of these AI firms will Koble
Guy explains that Koble’s approach includes sector-agnostic models
come from outside.
focused on pre-seed and seed stages, and that they train their algorithms 16
 SECTION - CONVERSATION SNAPSHOT

“Diverse by Default” with Ihar Mahaniok from Geek Ventures

The conversation in the podcast revolves around diversity, immigrant On the topic of diversity in venture capital, Ihar acknowledges the
founders, and the startup ecosystem. Rohit begins by introducing a complexities and polarization of the DEI (Diversity, Equity, and Inclusion)
previous report, Diverse by Default, which addressed the challenges faced movement in recent years. He believes that diversity and meritocracy
by diverse founders and the importance of diversity in decision-making and should coexist, and that the best founders should receive funding
innovation. The conversation continues by introducing Ihar, the guest on regardless of background. He notes that there is a growing interest among
the podcast, who is a software engineer turned venture capitalist. He LPs (Limited Partners) in funding overlooked founders, especially as they
started Geek Ventures three years ago with a focus on investing in are seeing that this can increase financial returns.
immigrant founders.
The conversation concludes with practical advice for founders: be open to
Ihar shares his journey from being an angel investor to running Geek learning, adapt to changing circumstances, and seek out smarter people to
Ventures, highlighting how his personal experience as an immigrant join your team. Ihar also emphasizes the value of angel investors, noting
inspired his investment thesis. He believes immigrant founders bring that experienced angels often provide more helpful support than VCs,
unique strengths such as goal orientation, problem-solving, and particularly in the early stages of a company’s growth.
adaptability, often because of the challenges they face in new

“
environments. Geek Ventures has grown significantly, now reviewing over
3,000 startups annually and maintaining a disciplined investment pace.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

I think that meritocracy, i.e. selecting the people

according to their merit, should not be opposite of
The discussion shifts to the challenges immigrant founders face beyond
fundraising, such as immigration policies, cultural adaptation, and lack
diversity. I don't support equity of outcomes. Of
of networks. Ihar explains how these issues can distract founders from course, I think that people who are able to do
their business, and how his firm helps by providing introductions and better work and better results should achieve
networking opportunities. He emphasizes the importance of networking better outcomes themselves. So, this is also why Ihar Mahaniok
for immigrant founders, advising them to build deeper connections and we don’t invest in all immigrant founders, we Managing Partner
Geek Ventures
actively seek out support. Additionally, Geek Ventures connects immigrant invest in the best immigrant founders.
founders from different backgrounds to cross-pollinate ideas and provide
mutual support. 17
 SECTION - CONVERSATION SNAPSHOT

“Pre-Seed ClimateTech Fundraising” with Johanna Broell from Carbonsate

Johanna introduced Carbonsate, a company she co-founded to address Johanna also spoke about her journey from the corporate world, where
the urgent need for carbon dioxide removal from the atmosphere. striving for perfection was key, to the startup ecosystem, where she
Carbonsate leverages nature’s power, using biomass and artificial carbon had to learn to be comfortable with uncertainty and incomplete
sinks to store carbon underground for centuries. They have already tested answers. Another learning point was refining her pitch: she moved from
their technology successfully and are now focused on scaling up. They’ve explaining the science behind their technology to a more market-oriented
secured partnerships globally to access millions of tons of biomass and are narrative, focusing on the efficiency and scalability of Carbonsate’s solution.
preparing to launch their first large-scale pilot site in Germany, supported
by a grant from the German Ministry of Economic Affairs. Johanna emphasized the importance of having strong mentors and
advisors who provide support and expertise in various areas, helping them
Johanna also shared the challenges she faced during fundraising. Initially, navigate challenges and grow the company. Her motivation stems from her
she found it difficult to decide whether to seek angel investment or venture love for nature and the desire to protect the planet for future generations.
capital, given her desire to move quickly and focus on product
development. She created a funnel of over 100 investors but faced
numerous rejections—64 from angel investors and 32 from venture capital
firms. Over time, however, she became more adept at pitching and
understanding the right type of investors to target. Johanna found that “ It's really hard not to see the big funding gap
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

that we have in the climate tech space

angel investors were willing to support the company’s vision and potential,
recognizing its promise even in the early stages of business development.
currently. I feel that many investors are
standing on the sideline and watching what
A significant aspect of Carbonsate's journey has been applying for grants. happens. And I would say for Europe, the
Johanna Broell
Johanna described the complex and time-consuming process of applying big theme is regulation. Nobody exactly Co-Founder, CEO
for a grant from the German Ministry of Economic Affairs, which took knows where this is going to end. Carbonsate

almost 10 months from start to approval. Despite the bureaucracy, the

grant is a crucial part of their funding and development strategy.

🎧 Podcast Link
18
 SECTION - CONVERSATION SNAPSHOT

“Pre-Seed ClimateTech Fundraising” with Laura Laringe from reLi Energy

Laura Laringe, co-founder and CEO of reLi Energy, spoke primarily about Laura also spoke about the bias her team faced as a non-German, female-
the focus of her company and the challenges faced in her fundraising led company in a male-dominated industry. This created credibility
journey. She emphasized that reLi Energy is dedicated to maximizing the challenges, which made both fundraising and customer acquisition more
operational efficiency of energy storage, particularly in batteries for difficult compared to similar startups with fully male or local teams. Despite
renewable fields like solar power. Their software aims to address these hurdles, she stressed the value of seeking feedback from the
inefficiencies in battery operations, improving both their performance and market, building a strong advisory network, and learning quickly from
profitability. the fundraising process.

In discussing fundraising, Laura shared that they initially faced challenges Her final advice to other founders was to start engaging with investors
when they tried to raise funds too early after pivoting from their initial early, even before formally seeking funding, to understand their
hardware-focused startup. The early lack of traction and market validation expectations and establish valuable connections.
made it difficult to secure investments. However, Laura highlighted the
importance of learning from rejections, understanding that investors want
to see traction before they invest. This experience guided them to shift
their focus towards building more market validation and sales traction
“ Energy is not going anywhere it's something
that is going to stay there forever and we
before seeking additional funding.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

need more and more energy and if we don't

They ultimately managed to secure over €400K in grants, which played a
invest in renewable energy we'll probably
crucial role in sustaining the company during the early stages. Laura also not going to be able to power all the demand
shared that they are currently closing a business angel round, aiming to …so we see that the trend is there and it will
raise between €250K and €300K, with more than half already committed. to grow and more interest will go there as Laura Laringe
She underscored the importance of customer traction and refining the more opportunity for return on investment Co-Founder, CEO
product as key to making the fundraising process easier, although it reLi Energy
are going to be there.
remains challenging.

🎧 Podcast Link
19
 SECTION - CONVERSATION SNAPSHOT

“Pre-Seed ClimateTech Fundraising” with Manu Pillai from CarbonBridge

Manu, an experienced entrepreneur with a background in designing over Initially, fundraising faced challenges, forcing a pivot to bio-based solutions
100 products across industries, shifted to sustainability after witnessing and a reset of investor outreach. Despite difficulties, Manu highlights
waste from prototypes he developed. His work with California farmers transparency with investors and quick decisions during negotiations. He
adapting to climate change inspired him to create CarbonBridge, aiming to stresses the importance of focus and confidence, especially when facing
produce low-cost methanol using biogas and microbiology, avoiding biased treatment. He notes extra scrutiny his diverse team faces.
carbon sequestration challenges. Supported by a U.S. DOE grant, they are
now in the prototyping phase. Manu believes in surrounding himself with experts to elevate his team’s
capabilities. He stays motivated by his family, aiming to leave the world a
Manu sees climate tech investment focused on managing greenhouse gas better place for future generations. His leadership draws on military
emissions and reducing energy use. He notes early-stage climate funding principles like trust, competence, and execution, which he believes are key
often favors university spin-outs due to peer-reviewed validation, a path his to early-stage startup success.
company didn’t take. Instead, they joined science-focused accelerators like
IndieBio and HAX, where lab access solved technical challenges. He
emphasizes understanding how investors perceive technical risk and
aligning with incubators supporting hardware-based climate tech startups.
Manu believes the future of climate tech lies in hitting cost efficiency while
“ One interesting readings I did was a book by
Admiral McRaven, (former head of the
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

bypassing flawed carbon markets. He is critical of the voluntary carbon United States Special Operations Command)…
markets for lacking scientific rigor, arguing that companies should focus on As a startup, we have a lot in common with
clear metrics like energy conversion rates. He predicts science-based those kind of entities where the most
regulations will boost the market. Encouraged by increased investor
important parameters are, you have to be
interest, Manu feels optimistic about climate tech funding growth. Manu Pillai
competent, you have to be trustworthy, and Founder, CEO

He identifies thermal energy and storage as under-invested areas,

then you have to execute. It's this iron triangle. CarbonBridge

particularly in regions like South Asia, where humidity reduces solar

photovoltaic efficiency. Converting heat to energy, he believes, offers a
better solution than relying on traditional solar methods. 🎧 Podcast Link
20
 SECTION - CONVERSATION SNAPSHOT

“Pre-Seed ClimateTech Fundraising” with Matias Machado from Leap Photovoltaics

Matias Machado shared insights about his startup, LeapPhotovoltaics, that funding level. He stressed the importance of being transparent with
which focuses on the challenges in solar energy manufacturing. He investors about changes in strategy and maintaining trust through clear
highlighted the problematic supply chain issues, particularly the communication. For LeapFotovoltaics, non-dilutive government grants
overreliance on outdated silicon solar cell technology, mostly produced by played a critical role, particularly from the California Energy Commission,
a couple Chinese companies. This concentration of production presents the Department of Energy (DOE), and the National Science Foundation
both environmental and trade challenges. LeapFotovoltaics is developing a (NSF). These grants not only supported the company’s R&D but also
breakthrough in solar cell manufacturing by eliminating wafers, moving helped build credibility with private investors. Matias highlighted the need
directly from silicon feedstock to a finished product, saving about 90% of for more programs to bridge the gap between early-stage R&D and
the silicon material and reducing embodied energy by 70%. These commercialization.
improvements could lead to a 30-50% cost reduction.

Regarding the US climate tech landscape, Matias mentioned that while “ I'll start off by saying that without government
grants, we simply would not exist….but there's a
there was a surge of investments from 2020 to 2022, the market has since
slowed down. However, he clarified that this doesn’t mean conditions are little bit of a gap missing when it comes to pushing
bad; instead, there has been a "reckoning." Hardware-heavy climate tech into low volume production to test the technologies
solutions take much longer to commercialize, and high interest rates have with customers and make sure that you're ready
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

made investors more selective. Yet, he emphasized that rounds are still for commercial liftoff. These are grant sizes of
happening. Startups need to balance bold ideas with financial discipline, anywhere between five and $20-$30 million.
especially as investors now take longer to get their funds together. There are some initiatives but there is a general
lack of programs at this stage. I've responded to Matias Machado
On fundraising, Matias discussed how LeapPhotovoltaics initially faced
some RFIs that have been put out by different Co-Founder, COO
challenges due to the size of their pre-seed round, which was too large for Leap Photovoltaics
angel investors but too small for venture capitalists. Based on feedback
agencies, so I'm hoping to see more funding
from the initial conversations with investors, the team adjusted their round opportunities at this level come out.
size by developing a clear set of milestones that would be achieved with
🎧 Podcast Link
21
 SECTION - CONVERSATION SNAPSHOT

“Tech for Good in venture business” with Paul Miller from BGV

The conversation covers a range of topics related to venture capital and Throughout the interview, Paul shares success stories from BGV’s portfolio,
mission-driven startups. Paul discusses the origins of Bethnal Green such as Aparito, a startup that revolutionized how data is collected in
Ventures, (BGV) highlighting how it started in one of London’s areas with clinical trials, which was recently acquired by Eli Lilly. He also discusses how
the aim of supporting startups that use technology to address social and BGV evaluates startups based on their potential for intentional and
environmental challenges. measurable impact, and the firm’s efforts to ensure diversity and inclusivity
in its investment processes.
Paul explains how the idea of "tech for good" emerged from his
experience with a previous EdTech venture, and how the landscape of In the final part of the conversation, Paul discusses the evolving role of
impact-driven startups has evolved since. He shares how BGV supports limited partners (LPs) and how BGV balances tech for good ideology with
early-stage startups, typically investing at the prototype phase, and helps the financial returns expected by investors. He concludes by sharing a
them scale by offering follow-on funding. He emphasizes that tech for personal insight, likening the process of fundraising to espionage, drawing
good is not charity, but rather a for-profit approach that delivers on his recent reading of John Le Carré novels.
measurable social and environmental impact while generating financial
returns.

The conversation also touches on the challenges and opportunities for tech
“
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

I think that the idea that you can unlock

for good startups. Paul mentions the initial skepticism they faced from
investors, the association of tech for good with charity, and how that
capital markets, you can unlock these huge
perception has shifted over time. He highlights the need for impact pools of capital and direct it towards social
measurement in these ventures to build trust and ensure accountability. and environmental problems through the
route of venture capital startups and so on; Paul Miller OBE
Paul also delves into diversity within the venture ecosystem, noting that has become a more accepted view over time. Managing Partner and CEO
Bethnal Green Ventures
while progress has been made, challenges remain in securing funding for
founders from underrepresented backgrounds. BGV, however, has
managed to maintain better diversity stats, partly because their mission
attracts founders with diverse experiences and backgrounds. 🎧 Podcast Link
22
 SECTION - CONVERSATION SNAPSHOT

“Diverse by Default” with Shila Nieves Burney from Zane Venture Fund

In this episode of TheOnePoint podcast, Rohit Yadav interviews Shila herself who are committed to investing in overlooked founders. She
Nieves Burney, founder and managing director of Zane Venture Fund, to mentions that although overall market might be pulling back on diversity
discuss diversity in venture capital and the challenges faced by initiatives, there are still hopeful signs, such as funds like hers continuing to
underrepresented founders. Rohit begins by revisiting previous year’s raise capital and companies like Google maintaining diversity-programs.
report, which focused on funding challenges diverse founders encounter
and benefits of diversity in business. However, the key question remains: A key theme in their discussion is the importance of networks and
how can the industry implement tangible solutions to these issues? mentorship. Shila stresses that many underrepresented founders lack
access to the networks that can help them develop their business ideas,
Shila shares her journey in starting Zane Venture Fund in 2019, which secure funding, or receive valuable mentorship. Finally, Shila mentions that
focuses on early-stage investments in underrepresented founders while founders often express frustration at being over-mentored without
addressing social determinants of health, such as education, housing, and receiving capital, mentorship can still provide crucial knowledge and open
financial inclusion, particularly in the underserved Southeast region of the doors, as it did in her own journey.
U.S. Shila was inspired to launch fund after witnessing firsthand how
difficult it was for minority entrepreneurs to access capital. Zane has been
investing in diverse founders to validate that these entrepreneurs can build
“ It starts with some of our institutions
understanding how important this is,
successful businesses. Conversation touches on importance of Zane
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

which then will lead to the emergence of

Access, a capital readiness program Shila created to prepare pre-seed
companies for VC investment. Many founders, especially
more funds focusing on diversity for the
underrepresented ones, struggle with understanding whether their broader venture ecosystem. And it's sad
businesses are venture-backable, and Zane Access provides mentorship that we have to have diversity focus, but
and network necessary to prepare them for fundraising. otherwise, how can these entrepreneurs Shila Nieves Burney
get funded, in my opinion? And so I think General Partner
Shila highlights the ongoing challenges within the venture capital and tech then you'll be seeing more collaboration Zane Venture Fund

ecosystems regarding diversity, especially in light of recent lawsuits, such as between these funds because they'll begin
the Fearless Fund case, which challenge diversity-focused investment to see that we can get deals as well.
strategies. Despite this, she emphasizes resilience of fund managers like 23
 SECTION - CONVERSATION SNAPSHOT

“Diverse by Default” with Til Klein from identity.vc

In TheOnePoint podcast, Rohit Yadav discusses the evolution and access knowledge, mentorship, and resources to bridge systemic gaps.
importance of diversity in venture capital (VC) with Til Klein, co-founder of
identity.vc, Europe’s first VC fund focused on LGBTQ-led startups. Rohit In closing, Til shares an initiative to connect startups with corporate LGBTQ
highlights the "Diverse by Default" report, which identifies barriers faced pride networks to facilitate corporate access, showcasing the strength of
by diverse founders and emphasizes diversity as a business strength. Til community as a strategic asset. The podcast underscores identity.vc’s
explains how he and his co-founder, Jochen, launched identity.vc to fill a commitment to diversity as a business advantage and their long-term goal
gap in Europe for LGBTQ-focused investing, inspired by U.S.-based funds. of reshaping the European VC landscape.
Til argues that LGBTQ founders often bring innovative perspectives due to
their experience challenging norms, which he believes positions them well
for entrepreneurship.
“ …if you lack the awareness, then you shouldn't
start a startup. So if you don't have the
The conversation touches on identity.vc’s positive reception from knowledge, you find your way to get this
startups, VCs, and investors, with Til noting that investors are
information. And that's kind of what I would
motivated by strong returns rather than solely social impact. However,
expect from a good founder, to find it out and
he criticizes institutional investors’ rigid requirements, like a lengthy track
record, which hinders diversity by restricting new and diverse fund
find your ways…
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

managers. He argues that large institutions, especially public funds, should

lead efforts to invest in underrepresented groups to foster industry-wide Having said that, part of this, to get the
inclusion. knowledge you need is building a community…. Til Klein
…Community is key when you are a founder. Founding Partner
Til emphasizes that founders should carefully choose investors who You can be a solo founder. don't care, but you identity.vc

understand their business and share their values, as these relationships are cannot be alone. So you need to have a network
crucial, particularly in difficult times. He also advocates for creating of people who help you or who consult to solve
community support networks and highlights identity.vc’s efforts to foster these questions. And here the LGBTQ
such connections through initiatives like the “League of Unicorns” Slack
community, by the way, is a great community.
channel and upcoming networking events. These programs help founders 24
 SECTION - PAST VENTURE ECOSYSTEM REPORTS

Report - The Big Book of Venture Capital - Q2 2024

Released in July 2024, the report (Link) aimed to highlight the key venture
and startup ecosystem updates that happened in Q2 ’24.

In the Q1 ‘24 report, I mentioned the venture sector being ‘in the woods,’
though we could see the sunlight. A quarter down the line, it feels like it will
take us some time to bounce back fully. Stuck in this situation, we can either
be optimists or not! Key strategic headlines are below.

🆙 Fundraising has grown for two consecutive quarters.

↕ Valuations and deal size are up for most stages in the U.S. and Europe.
However, the number of deals happening is down.
✅ AI investments continue to rise.
💡Secondaries are booming. Quarter of startups trade at a premium. New
secondary VC funds are coming up to capture this opportunity.
🆙 Corporations worldwide are increasing their involvement in the startup
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

space. Many are also setting up CVCs to invest in hot areas like AI.
↘ Global exit data isn’t inspiring, and exit volume will likely fall short of '23
numbers. Global M&A is picking up but has yet to influence Tech M&A fully.
⚠ VC fundraising is still strained and lopsided. Emerging managers
consistently raise less than half of the total U.S. VC funds. Established
managers dominate.

25
 SECTION - PAST VENTURE ECOSYSTEM REPORTS

Report - The Big Book of Venture Capital - Q1 2024

Released in April 2024, the report (Link) aimed to highlight the key venture
and startup ecosystem updates that happened in Q1 ’24. Short snapshot of
what’s inside the report in below:

Overall, the startup and venture industry is definitely in a state of evolution

and undergoing a business cycle reset. The setting in Q1 2024 is the ‘same
old 2023’ but with a hint of improvement. We are not yet out of the woods,
but we can see the sunlight.

🆙 Valuation trends in 2024 gives hope for recovery. Q1 data showed a

rebound in valuations.
✅ Uptick in the global startup investments. Overall, VCs anticipate increased
investment in 2024.
⁉ VC fundraising is still strained.
↕ Q1 remained slow w.r.t exits, but there is much to hope for in 2024.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

💡 Family offices are increasing investments in alternative assets, potentially

strengthening the VC asset class in the long term.
⚙ Venture asset class performance remains an issue w.r.t DPIs. VC cash flows
are negative due to higher fund contributions than distributions.

26
 SECTION - PAST VENTURE ECOSYSTEM REPORTS

Report - The Macro in Venture

Released in January 2024, the report (Link) aimed to understand how the
macro factors (geopolitics, elections, inflation, rates, consumption, and more)
impact our startup and venture capital ecosystem, directly or obliquely. We
often say that venture is a decade+ game, though we forget that short-term
trends compound into long-term outcomes.

Key idea captured in the report was that of short term ‘RRR’ (Roll,
Recession, and Rebound) scenarios.

Main topics covered in the report were -

🔄 Venture capital is a circular flow business.

🔑 Inflation remains a key short-term variable, and ‘Roll’ is the anticipated
short-term scenario
➡ Venture inflows - bump, but not a roadblock!
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

🏢 Venture business - suffering, but striving for an upgrade!

↩ Venture outflows - down, but not disappeared!
⁉ Enough short-term macro risks to keep us on our toes in 2024

27
 SECTION - PAST VENTURE ECOSYSTEM REPORTS

Report - The Big Book of Venture Capital - 2023

Released in December 2023, this 200+ page deck (Link) was a treasure trove of
vital venture and startup insights into the entire year. It had something for
everyone in the ecosystem, and the hope was that it helped to connect the dots
and foster a better understanding of 2023.

Key idea captured in the report was that of an ‘LLL’ environment of 2023. A
snippet from the report.

A decade down the line, there will be founders and investors who will boost
their credibility of having lived through 2023. It’s THAT significant!
This year can be summarised in three words - Low, Limited, Lopsided ('LLL'
environment)
• Low: Valuations of startups in most stages went through their lowest levels.
• Limited: Capital availability and deployment became limited to only the
best opportunities.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• Lopsided: The power remained in the investor’s corner in 2023. It was

lopsided towards the capital providers.

This LLL environment, in the end, is likely to benefit the larger ecosystem.
The argument lies in the theory of ‘booms and busts.’ Without going into the
nuances, the ecosystem needed a reset, and 2023 provided just that. Moving
into 2024, I’m sure we have adapted to the realities and will scale up
energetically in a newer set of circumstances.

28
 SECTION - PAST VENTURE ECOSYSTEM REPORTS

Report - Diverse by Default

Released in September 2023, this collaborative deck (Link) was dedicated to

the startup and the venture capital ecosystem, giving tangible methods and
frameworks for making diversity a default.

Key idea captured in report was that of 3 approaches mentioned below.

1. 𝗙𝗼𝗿 𝗮𝗹𝗹 𝗲𝗰𝗼𝘀𝘆𝘀𝘁𝗲𝗺 𝗽𝗹𝗮𝘆𝗲𝗿𝘀 - follow an Awareness Action (AA) approach to

kindle tough yet constructive conversations.
2. 𝗙𝗼𝗿 𝗳𝗼𝘂𝗻𝗱𝗲𝗿𝘀 - follow a Build Basics (BB) approach to strengthen your
startup outcomes.
3. 𝗙𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 - follow a Cautious Care (CC) approach to establish
diversity-enabled pathways.

We know the ‘What’ of diversity issue. We understand the ‘Why’ of the

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

diversity problem. So, the goal of the report was to present an all-
encompassing view of forward-looking solutions with a pragmatic approach
connected to reality.

29
SECTION

STARTUP FUNDRAISING

IMAGE FROM ADOBE FIREFLY

Prompt given - “Global venture funding took a downturn, falling back to
2016/17 levels. In all major geographies start fundraising was down to a
varying degree in Q3. Though, one in three VC dollars now flows into AI,
with Silicon Valley capturing 41% of U.S. AI funding.”
Image made using ‘Bauhaus’ technique.

30
 SECTION - STARTUP FUNDRAISING

Index

Startup Fundraising Data & news • Europe Fundraising Data • Active Investors Mostly at Early Stages
• Global data - CB Insights • Europe Fundraising Data by Stage • Pre-Seed Thoughts
• Global data - Crunchbase • UK Funding by Source • Seed Thoughts
• Country fundraising comparison • AI Funding Buzz • Seed Thoughts-India
• Global - Development and Growth Score • U.S. VCs more likely to invest in AI • Series A Thoughts
• Global data by Stage (CrunchBase Data) • AI Funding is Concentrated in the U.S. • Fundraising Advice
• Global data by Stage (Dealroom Data) • AI vs. non-AI • Selection Criteria
• Regional Deal Share by Deal Stage • Diverse Interests of Global Investors • More Nuggets
• Global data - Deal Share Percentage • What is the Most Funded Sector Deal dynamics
• Mega Rounds as % of Total • Big Tech is the New VC in Town • U.S. Deal Size - by Stage and by Series
• Mega Rounds by Geography • How Fast were Unicorn Founders Able to Raise • U.S. Deal Size by Series
• U.S. Fundraising Data • Vacations and Deal Closing • Deal Size comparison U.S. vs Europe
• U.S. - Deal Count and Deal Share • Founders can't be Raising Every 18 Months • Lead Investor Check Size
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• North American Data (by Stage) • U.S. Venture Debt Data • Up- and Down-rounds
• U.S. - Deals (Long- and Short-term Trends) • Venture Debt Nuggets • Dilution (U.S.)
• U.S. - Deal activity (Dealroom) • Good Signs from LPs • Redemption Rights
• U.S. VC Backed Inventory • Future Investment Expecations (Europe) • Safe Dynamics
• U.S. Top 10 metros • Geopolitics is Pushing Defence Startups • Time Between Financing Rounds
• Bay Area Lossing Grip at Earliest Stages? • VC Dealmaking Indicator • Seed to Series A
• Asia Fundraising Data • Capital Demand to Supply • Seed-Bridge to Series A
• Asia Fundraising Data by Stage • Big Tech in Europe • Liquidation Preferences
• Asia Deal Count • Decline in Active Investors • Pay-to-Play 31
 SECTION - STARTUP FUNDRAISING

Summary

Startup fundraising data and insights have fallen to 2014 levels, signaling a slow recovery. North America's
growth- and late-stage investments have seen a strong rebound, offering
Global startup fundraising hope for early-stage startups if momentum continues.
Global venture funding took a sharp dip last quarter, falling to 2016/17
levels with a 20% drop quarter-over-quarter, marking the first setback after Compared to previous years, 2024 U.S. venture capital investment till Q3 is
three consecutive growth quarters. Crunchbase reports a 16% decline in slightly outperforming 2019, 2020, and 2023. The Bay Area remains
fundraising volume, breaking the upward trend. Late-stage and Growth- dominant, but metros like Denver, San Diego, and the Research Triangle are
stage deals showed slight growth, but Seed and Angel-stage funding rapidly growing. Seed-stage funding is shifting away from Silicon Valley, with
plunged in both deal numbers and volume, signaling a shift in investor hubs like Atlanta and Phoenix gaining ground. While late-stage funding still
focus. Asia's share of deal count rose, while the U.S. and Europe saw favors coastal cities, location is becoming less critical.
declines. Mega rounds also fell 14% in Q3, reversing the growth trend. The
U.S. still dominates mega rounds, with 2.9x the volume of Asia and 2.6x that Asian startup fundraising
of Europe, leaving the rest of the world far behind. Asian fundraising deals and volumes have plummeted to their lowest since
2018, with a sharp decline since Q4 2021. Growth, late-stage, Angel, and
Country fundraising comparison Seed investments are all down, reflecting a broad decline across stages. Has
The U.S. saw an 8% rise in startup investment, strengthening its global lead. the market hit bottom? Q4 might hold the answer.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

India surged in 2024 fundraising, driving regional growth, while China,

South Korea, and Singapore faced notable declines in venture activity European startup fundraising
compared to 2023. European fundraising volume has fallen to 2019-2020 levels, with deal
numbers now below the long-term average since 2018, underscoring a
U.S. startup fundraising substantial slowdown. VC dealmaking is set for a tough year, with deal value
U.S. startup investment volume declined in Q3, dropping 15% after two down 9.7% from 2023. By Q3, only 7,460 deals closed, and the year’s total
quarters of growth. Despite this, outsized deals are driving total deal value, is expected to fall 11.9% short of last year. Q3 hit especially hard, with deal
with 2024 on track to surpass $175.2 billion. However, venture deal numbers volume dropping to 2020 levels—a 36% quarterly and nearly 40% annual
decline. Unlike the U.S. and global trends, Europe saw declines across all
stages, reflecting a more pronounced regional slowdown.
32
 SECTION - STARTUP FUNDRAISING

AI startup fundraising Vacations and fundraising

One in three VC dollars now flows into AI, yet funding sizes often defy U.S. venture capital remains steady throughout the year, peaking in March
norms—company age or stage doesn’t always dictate financing rounds. and dipping near Thanksgiving and Christmas. In contrast, Europe sees
Despite intense media focus, only 20% of venture dollars from June to strong seasonality, with activity slowing in July and August but rebounding
August went to AI, with notable regional contrasts: 27% of U.S. VCs in June and September. France contributes significantly to the summer
invested in early-stage AI between July and September, while Europe was slowdown, with August VC activity dropping to just 20% of the yearly
below 20% and China around 15%. Silicon Valley leads the U.S. AI surge, average.
capturing 41% of all venture funding this year, with over a third of American
AI startups based there. In H1 2024, AI deals represented just 3% of total Venture Debt
deals but took 15% of funding, boasting valuations 5X higher and deal sizes In the U.S., tech lending is on track for a record year, with nearly 75% of
6X larger than non-AI startups. debt flowing to venture growth companies, though lenders remain cautious
on large loans. Europe’s venture debt market is also booming, set to make
Diverse Interests of Global Investors 2024 the third-highest year on record, just behind 2022. Though smaller
Global venture capital preferences vary widely by region. Asian investors are than the U.S. market, European venture debt is growing as a cost-effective
twice as likely to back e-commerce startups, while European investors are alternative to equity, particularly amid slowing VC deals. Growth-stage
1.7X more likely to invest in sustainability-focused companies, highlighting startups dominate in Europe. While venture debt is gradually gaining
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

regional sectoral differences in fundraising priorities. traction, especially in Europe, VCs are still cautious, particularly for early-
stage startups. For late-stage companies, it can be a strategic tool for
Big Tech is the New VC in Town acquisitions—though those instances are rare.
Flush with cash, Big Tech is rapidly transforming into the new powerhouse of
venture capital. While the data is based on 2023, the sharp rise and growing Active investors
influence of Big Tech in the VC world is unmistakable and shows no signs of By Q3 2024, active investors have fallen to just 45.5% of 2021 levels,
slowing down. highlighting investor caution in today’s tight liquidity market. Most active
investors now focus on earlier stages.

33
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Capital Demand to Supply Ratio Dilutions

A significant gap exists between capital demand and supply in late- and In the U.S., dilution reached 5-year lows in early 2024, with late-stage
growth-stage deals, while early-stage funding sees a slight surplus of supply dilution down to 8% in Q2 and early-stage at around 19%. Founders in
over demand. Southern Europe faced steeper dilution at the end of 2023 due to tougher
funding conditions, but pressures are now easing. The final quarter,
Deal dynamics however, remains a challenging time for fundraising in the region.

Deal sizes Liquidation Preferences

Median deal sizes have risen across most U.S. stages and series. In Europe, Participating liquidation preferences dropped in early-stage financings over
deal sizes are also growing but still trail the U.S. which are - Pre-Seed/Seed the past year but rose in late-stage deals, with 13% of late-stage financings
deals are 1.7x larger, early-stage deals are 3x larger, and late-stage deals are by June having multipliers above 1x—the highest in five years—offering
1.7x larger. Despite gains, European deal sizes remain consistently lower. investors added protection.

Down rounds
Globally, the share of down, up, and flat rounds in 2024 is similar to 2023,
but the details reveal key shifts. Early-stage down rounds dropped to 15.6%
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

in early 2024 from 21.5% in late 2023, with up rounds rising to 74.9%. In
contrast, late-stage down rounds spiked from 28% to 39%, with nearly half
of all late-stage deals either flat or down. Most down rounds in Q3 were
from companies last funded in the 2021 valuation bubble, while up rounds
were concentrated in those last funded in 2023. Additionally, bridge
financings saw more frequent valuation declines than primary financings.

34
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Global / CB Insights Data

Global venture funding took a significant dip last quarter, falling back to levels not seen since 2016/17. Quarter-over-quarter, fundraising
plummeted by 20%, marking a sharp reversal after three consecutive quarters of growth. Q3's decline stands out as the first setback in what
had been a steady upward trend for venture capital activity.

Quarterly equity funding & deals

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from CB Insights. Click graph for source post. 35
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Global / Crunchbase Data

Crunchbase data reveals that fundraising volume took a 16% dip quarter-over-quarter, breaking a streak of three consecutive quarters of
growth. Q3 marked the first decline after months of upward momentum in venture funding.

Global Venture Dollar Volume Through Q3 2024

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from Crunchbase. Click graph for source post. 36
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Startup Fundraising / Country Fundraising Comparison

The U.S. saw a steady 8% boost in startup investment volume, further solidifying its lead over all other countries. Meanwhile, India
experienced a surge in fundraising in 2024, setting the pace for growth in the region. In contrast, other Asian nations are facing significant
declines in venture activity, with China, South Korea, and Singapore all seeing drops compared to their 2023 levels.

Top 10 global countries by VC investment in 2024

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from Dealroom. Click graph for source post. 37
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Startup Fundraising / Global Development and Growth Score

Country Growth Scores are clustered together more closely than country Development Scores. The bulk of the top 20 was made up of
10 European countries, four Asian countries, and two Middle Eastern countries. S

Top 20 countries ranked by Development Score (Q3 2018 to Q2 2024)* Top 20 countries ranked by Growth Score (Q3 2018 to Q2 2024)*
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. 1st graph from Crunchbase and 2nd from PitchBook. Click graphs for source post. 38
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Global / Stage Perspective

We’re witnessing a surprising shift in the venture funding landscape. A closer look at the data reveals a nuanced story: Late-stage and
Growth-stage deals have seen a slight uptick, offering a glimmer of positivity. However, Seed and Angel-stage fundraising has taken a steep
dive, both in deal numbers and overall volume. This marks a significant change, as Seed-stage deal volume had been steadily climbing for
several quarters until now. The reversal at the early stage signals a notable shift in investor focus.

Global Late-Stage And Technology Growth Investment Through Q3 2024 Global Early-Stage Investment Through Q3 2024

Global Seed And Angel Investment Through Q3 2024

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of all charts = Global. All graphs from Crunchbase. Click graphs for source post. 39
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Global / Regional Deal Share by Deal Stage

Regional deal share by deal stage in Q3’24

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from PitchBook. Click for source post. 40
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Global / Stage Perspective - 2

Dealroom data shows that this past quarter saw the lowest amount of VC funding raised by startups in more than four years, hitting levels
not seen since Q2 2020.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from Dealroom. Click graphs for source post. 41
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Global / Deal Share Percentage

From a deal count perspective, Asia saw it’s share rise, while both the U.S. and Europe experienced a decline in their portion of total deals.

Percent of quarterly deals by global region

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from Crunchbase. Click graphs for source post. 42
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Startup Fundraising / Mega Rounds as % of Total

After two consecutive quarters of rising mega deal volumes, Q3 experienced a significant 14% drop in deal numbers. The share of mega
rounds as a percentage of total global deals also declined, reversing the growth trend seen over the past two quarters.

Quarterly funding & deals from mega-rounds (deals worth $100m+) Quarterly mega-rounds as percent of funding
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. 1st graph from Crunchbase and 2nd from PitchBook. Click graphs for source post. 43
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Mega Rounds by Geography

When it comes to mega rounds, the U.S. continues to dominate, with a volume that's 2.9 times higher than Asia and 2.6 times more deals
than Europe. The rest of the world barely registers by comparison, highlighting the U.S.'s commanding lead in this space.

Mega-round funding & deals by global region in Q3’24

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. 1st graph from Crunchbase and 2nd from PitchBook. Click graphs for source post. 44
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / U.S. Data / 1

Looking across data from multiple sources, a clear trend emerges: U.S. startup investment volume declined in Q3, following two quarters of
strong gains. Deal numbers also took a hit, dropping by 15%, signaling a slowdown in what had been a robust growth streak.

North America Venture Dollar Volume Through Q3 2024 U.S. quarterly funding & deals
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

1st graph from Crunchbase and 2nd from CB Insights. Click graphs for source post. 45
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / U.S. Data (yearly) / 2

Taking a broader, year-over-year view, outsized deals are driving up total deal value, putting 2024 on pace to hit $175.2 billion—surpassing
even 2020. However, the number of venture deals has dropped to levels reminiscent of 2014, and a meaningful market rebound has yet to
materialize. While big deals are boosting value, overall activity remains subdued.

US VC deal activity
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. Data for 1st chart is PitchBook and 2nd chart is from Aumni. 46
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / U.S. Deal Count and Deal Share

U.S. deal count bucket for below USD 1 million deals continues to decrease and same trends appears on dollar volume level.

US VC deal count by size bucket US VC deal value ($B) by size bucket

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Big Book analysis. Geographic focus of both charts = U.S. Data from PitchBook. 47
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / North America / Stage Perspective

Mirroring the global trend, North America’s growth- and late-stage investments saw significant jumps in both deal volume and numbers,
following a four-quarter slowdown. This is a positive sign—activity at the end of the funding funnel is picking up, which could lead to a
much-improved fundraising environment for early-stage startups in the coming quarters. The key now is for this upward trend to maintain
its momentum.

North America Late-Stage & Technology Growth Investment Through Q3 2024 North America Early-Stage Investment Through Q3 2024
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

North America Seed And Angel Investment Through Q3 2024

Geographic focus of all charts = North America. All graphs from Crunchbase. Click graphs for source post. 48
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Startup Fundraising / U.S. VC Deal Activity / PitchBook

Mapping the current landscape against both long-term and short-term trends reveals that venture funding likely hit its lowest point in 2024.
Now, we’re starting to see early signs of a rebound, signaling a potential shift in momentum.

VC deal value short- and long-term trends VC deal count short- and long-term trends
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. Data from PitchBook, as of July 31, 2024. 49
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / U.S. VC Deal Activity / Dealroom

When we compare 2024's fundraising trend to previous years in the U.S., venture capital investment is slightly outperforming levels from
2019, 2020, and 2023, showing a upward trajectory despite recent market challenges.

US VC investment by month (2019 - 2024)

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Data from Dealroom. Click for source post. 50
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Startup Fundraising / U.S. VC Backed Inventory

The growing stockpile of private companies means investors are finding it harder to turn paper gains into actual returns to reinvest in VC. As
a result, startups are struggling to secure additional funding rounds.

VC-backed company count by stage (smoothed)

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Data from PitchBook. Click for source post. 51
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / U.S. Top 10 Metros

In the U.S., the Bay Area continues to hold its dominant position over other metros, even though its investment volume in the first three
quarters of 2024 has remained relatively flat compared to 2023. Meanwhile, metros like Denver, San Diego, and the Research Triangle have
experienced explosive growth in 2024, significantly outpacing their 2023 investment volumes.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. Graphs from Carta. Click graphs for source post. 52
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Bay Area Losing Grip at Earliest Stages

Silicon Valley’s early-stage pull is waning, with only 24.7% of sub-$1 million seed rounds happening there as hubs like Atlanta, Portland, and
Phoenix gain traction. Later-stage funding, however, still favors coastal centers like New York and San Francisco, where talent is
concentrated. While deals are more spread out, nearly 70% of investment dollars still flow to established hubs.

Share of VC deal count Share of VC deal value

by market breakout by market breakout
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from Carta. Click for source post. 53
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Asia

Asian fundraising deal numbers and volume have plunged to their lowest levels since 2018, marking a sharp decline since Q4 2021. The
downward trend is clear, but have we hit the bottom? Q4 may hold the answers.

Asia - Quarterly funding & deals Venture Financing in Asia

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Asia. 1st graph from CB Insights and 2nd from PitchBook. Click graphs for source post. 54
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Asia - Fundraising by Stage

The Asian market presents a different story, with growth- and late-stage deal volumes experiencing a noticeable drop, along with Angel and
Seed stage investments.

Asia Venture Dollar Volume Through Q3 2024 Asia Seed And Angel Investment Through Q3 2024

Asia Early-Stage Investment Through Q3 2024 Asia Late-Stage & Technology Growth Investment Through Q3 2024
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of all charts = Asia. Graphs from Crunchbase. Click graphs for source post. 55
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Asia Deal Count

Deal numbers across all stages have continued to decline, signaling a broad downward trend in venture activity throughout the region.

Asia Venture Deal Count Volume Through Q3 2024

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = Asia. Graph from Crunchbase. Click for source post. 56
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Europe

European fundraising volume dipped to the levels last seen in 2019 and 2020. Deal numbers have also now dipped below the long-term
average calculated since 2018, highlighting a considerable slowdown in the region's venture activity. VC dealmaking in Europe is heading for
another tough year, with deal value tracking 9.7% below 2023. So far, around 7,460 deals have closed in the first three quarters, and the
total annual deal count is expected to fall 11.9% short of last year’s numbers.

Europe - Quarterly funding & deals Venture financing in Europe

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Europe. 1st graph from CB Insights and 2nd from PitchBook. Click graphs for source post. 57
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Europe / Stage Perspective

Europe felt an even sharper impact in Q3, with deal numbers and deal volume taking a significant hit. Q3 deal volume dropped to levels not
seen since 2020, with a staggering 36% decline quarter-over-quarter and nearly 40% year-over-year. Unlike the global and U.S. trends,
Europe saw declines across all stages in Q3, with both deal volume and deal numbers dropping to varying degrees. This highlights a more
widespread slowdown in the European venture landscape compared to other regions.

Europe Venture Dollar Volume Through Q3 2024 Europe Late-Stage & Technology Growth Investment Through Q3 2024
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Europe Early-Stage Investment Through Q3 2024 Europe Seed And Angel Investment Through Q3 2024

Geographic focus of all charts = Europe. Graphs from Crunchbase. Click graphs for source post. 58
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Startup Fundraising / UK Funding by Source

In 2024, a remarkable 70% of venture capital flowing into the UK came from outside UK (majorly from the U.S.), marking one of the highest
proportions on record since 2014. This highlights the growing global interest in the UK's startup ecosystem.

UK venture capital by investor source

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = UK. Graph from Dealroom. Click for source post. 59
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Startup Fundraising / U.S. VCs More Likely to Invest in AI

Despite the overwhelming media attention on AI, only about 20% of venture dollars from June to August went into AI funding. The disparity
is even more striking outside the U.S. While 27% of U.S. VCs invested in early-stage AI companies between July and September, Europe’s
share was below 20%, and China’s was around 15%, according to Crunchbase.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = Global. Graph from FastCompany. Click for source post. 60
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / AI Fundraising Buzz

One in every three VC dollars now pours into AI, but in this booming sector, funding size often defies expectations—where a company's age
or stage doesn't necessarily dictate the size of its financing rounds.

Global Funding To AI Through Q3 2024

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Charts from CB Insights. Click for source post. 61

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Startup Fundraising / In the U.S. AI Fundraising is Concentrated

Silicon Valley has captured 41% of all U.S. venture funding this year, fueled by the AI boom, with over one-third of American AI startups
based in the region.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. Chart from CB Insights. Click for source post. 62
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Startup Fundraising / AI vs Non-AI

AI is working its magic. In H1 2024, AI deals made up just 3% of total deals but captured 15% of the funding, with valuations 5X higher and
deal sizes 6X larger than non-AI startups. Simply wow!
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from COATUE. Click for source post. 63
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Diverse Interests of Global Investors

Global venture capital preferences vary widely by region. Asian investors are twice as likely to back e-commerce startups, while European
investors are 1.7X more likely to invest in sustainability-focused companies, highlighting regional sectoral differences in fundraising
priorities.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

* tags for companies receiving seed to Series

B rounds from Jul. 15 to Sept. 1, 2024.

Geographic focus of the chart = Global. Data from Crunchbase. Click for source post. 64
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Global - What are the Most Funded Sectors?

In 2024, enterprise software companies—many with AI integration—secured the lion’s share of VC capital. Generative AI and related
technologies remain the hottest frontier tech sectors, continuing to attract the most funding this year.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Both graphs from Dealroom. Click graphs for source post. 65
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Big Tech is the New VC in Town

Flush with cash, Big Tech is rapidly transforming into the new powerhouse of venture capital. While the data is based on 2023, the sharp rise
and growing influence of Big Tech in the VC world is unmistakable and shows no signs of slowing down.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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Startup Fundraising / How Fast Were Unicorn Startups Able to Raise?

U.S. unicorns move faster than their peers, typically securing their first VC round 7 months sooner—taking just 1.7 years compared to 2.3
years for other VC-backed companies.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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Startup Fundraising / Vacations and Deal Closing

U.S. venture capital is steady year-round, peaking in March and slowing slightly near Thanksgiving and Christmas. In contrast, Europe
experiences more seasonality, with July and August as the quietest months, though June and September make up for the lull. France
significantly impacts this summer dip, with August VC activity falling to just 20% of the yearly average.

Snippets from the post

“ Looking at relative venture capital activity on both sides of the

pond shows that US venture capital is much more consistent
across the calendar year than the European ecosystem.

In the last five years, March has been the busiest month for US
investment, with the number of rounds being done remaining
relatively stable through the year, dropping away a little towards
Thanksgiving and Christmas.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

In Europe, VC seasonality is much more extreme. July and

August are by far the quietest months, but its not all lost activity,
June and September do overcompensate.

France alone has the biggest impact on the European summer

dip. In France, venture capital activity in August typically reaches
just 20% of the annual monthly average.

Geographic focus of the chart = Europe. Chart from Dealroom. Click for source post. 68
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Startup Fundraising / Founder’s Can’t be Raising Every 18 Months

As the gap between primary fundraising rounds grows longer across all stages, founders must plan for extended cash and runway needs.
This shift means adjusting fundraising targets and round sizes to navigate the new, longer fundraising cycles.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the charts = U.S. Graph from Carta. Click for source post. 69
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / U.S. Venture Debt Data

Tech lending is on track for a record high, with nearly 75% of debt going to venture growth companies. However, lenders are staying
cautious when it comes to issuing large loans.

Tech venture debt deal activity Median and average late-stage venture debt deal values ($B)
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. Graphs from PitchBook. Click graph for source post. 70
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Europe Venture Debt Data

Europe's venture debt market is booming, on track to make 2024 the third-highest year on record, just behind 2022. While less mature than
in the U.S., venture debt is gaining popularity as a cost-effective alternative to equity, especially with the slowdown in VC dealmaking.
Growth stage dominates the venture debt category in the Europe.

Tech venture debt deal activity Share of venture debt deal value by stage
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Europe. Graphs from PitchBook. Click graph for source post. 71
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Startup Fundraising / Venture Debt

Let’s look at both sides of the coin. On one hand, venture debt is slowly gaining traction in regions like Europe. On the other, many VCs
remain wary of using venture debt, especially for early-stage startups. That said, venture debt can be a valuable tool for late-stage startups
looking to acquire other companies—though how often does that really happen?
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

72
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Startup Fundraising / Good Signs from LPs

Snippet from the article

“ KfW Capital says it focuses on gender diversity in

its due diligence process, and has many funds in
its portfolio that are led by female GPs, or that
have women at the partner or senior investment
team level. In 2023, 46.3% of the funds in its
portfolio had at least one female GP.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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Startup Fundraising / Future Expectations from VCs

New investment activity is finally picking up speed—for the first time in three years—and this momentum is likely to carry forward into the
near future.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

74
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Startup Fundraising / Geopolitics is Pushing Ahead Defence Tech Startups

U.S. investors have ramped up funding for European defense tech startups, contributing over 65% of the sector’s VC investment this year, up
from 18% in 2023, according to Dealroom.co. This marks a sharp reversal from last year, when domestic investors provided over half of the
funding amid rising global conflicts.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the charts = Europe. Graph from FT and data from Dealroom. Click graph for source post. 75
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Startup Fundraising / VC Dealmaking Indicator

For years, startups held the advantage. From 2010 to 2015, late-stage deals were more investor-friendly, but after 2015, deal terms became
more startup-friendly across all stages, peaking in mid-2020. However, since 2022, the trend has reversed as startups, after raising large
rounds, face increasing demand for additional capital. Having peaked in 2024 towards being Investor friendly, the market is again moving
towards startup friendly zone.

VC Dealmaking Indicator
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from PitchBook. Click graph for source post. 76
 SECTION - STARTUP FUNDRAISING

Startup Fundraising / Capital Demand to Supply Ratio

This PitchBook chart reveals a striking gap between the demand and supply of capital in late-stage and growth-stage deals. Meanwhile, the
early-stage landscape tells a different story, with capital supply slightly outpacing demand.

Capital Demand to Supply Ratio

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from PitchBook. Click graph for source post. 77
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Startup Fundraising / Big Tech in Europe

Big Tech firms have ramped up their investment in European tech startups in 2024, with VC rounds totaling $3.1 billion in H1—a massive 5x
jump from $545 million in 2023. Big Tech is now participating in more European VC deals than ever, with activity continuing to climb.

Value of VC rounds with Big Tech involvement Number of VC rounds with Big Tech involvement
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Europe. Both graphs from Founders Forum report. Click graphs for source post. 78
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Startup Fundraising / Decline in Active Investors

By Q3 2024, the number of active investors is only 45.5% of the total seen in 2021. While data suggests capital is available, this sharp drop
underscores the extreme caution investors are exercising in today’s liquidity-tight market.

Unique investor count in VC deals

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from PitchBook. Click for source post. 79
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Startup Fundraising / Active Investors Skewed to Earlier Stages

Most number of active investors are skewed to earlier stages today.

U.S. VC investors by stage

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Chart from SVB report. Click for source post. 80
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Startup Fundraising / Pre-Seed Thoughts / 1

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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Startup Fundraising / Pre-Seed Thoughts / 2

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Startup Fundraising / Seed Thoughts

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Startup Fundraising / Seed Thoughts - India

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Startup Fundraising / Series-A Thoughts

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Startup Fundraising / Advice - 1

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Startup Fundraising / Advice - 2

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Startup Fundraising / Advice - 3

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Startup Fundraising / Advice - 4

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Startup Fundraising / Advice - 5

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Startup Fundraising / Selection Criteria

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Startup Fundraising / More Nuggets - 1

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Startup Fundraising / More Nuggets - 2

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Startup Fundraising / More Nuggets - 3

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Deal Dynamics/ U.S. Deal Size - by Stage and by Series

The median deal size has trended upwards almost across all stages and series in the U.S.

Median U.S. VC deal value ($M) by stage Median U.S. VC deal value ($M) by series
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Deal Dynamics/ U.S. Deal Size by Series

Again similar trend appears from the CrunchBase data. The median deal value has trended upwards almost across all series in the U.S.

US Seed, Series A, B, and C Median Amounts Through H1 2024

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Deal Dynamics / Deal Size Comparison U.S. vs Europe

An interesting trend emerges when comparing U.S. and European deal sizes. While Europe is seeing a more noticeable jump in deal sizes
across stages, they still lag behind the U.S. significantly. For example, U.S. deal sizes at the Pre-Seed/Seed stage are 1.7X larger than
Europe's, early-stage deals are 3X bigger, and late-stage deals are 1.7X larger. Despite the growth, Europe’s deal sizes remain smaller across
the board.

Median deal size ($M) by stage in U.S. Median deal size ($M) by stage in Europe
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Data from PitchBook. Click graphs for source post. 97

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Deal Dynamics / Lead Investor Check Size

Alongside rising pre-money valuations, median late-stage lead investor check sizes surged in the first half of the year, hitting just over $30
million—a level not seen since early 2022. Despite this, the percentage of a round claimed by lead investors has stayed relatively stable, with
only slight quarter-to-quarter fluctuations and no clear trend in either direction.
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Deal Dynamics / Down Rounds / 1

Globally, the percentage of down rounds, up rounds, and flat rounds in 2024 has stayed nearly the same as in 2023. However, the real story
is in the details, which we’ll explore on the next page.

Global up, flat or down rounds

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Deal Dynamics / Down Rounds / 2

Down rounds have decreased for early-stage startups, dropping to 15.6% in early 2024 from 21.5% in late 2023, while up rounds rose
to 74.9%. Flat rounds also declined slightly. However, late-stage companies saw a sharp rise in down rounds, jumping from 28% to 39%
during the same period. Nearly half of all late-stage deals in early 2024 were either flat or down rounds.

Round type prevalence (Early Stage) Round type prevalence (Late Stage)
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Deal Dynamics / Down Rounds / 3

Something like 20% of all priced US rounds on Carta this year have been down rounds. That's about double the historical rate of 10% -
and you can see in the chart below the disparity between down rounds in primary financings vs bridge financings. Bridges are always
more likely to entail some valuation declines.

Up, flat or down rounds in the US

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Deal Dynamics / Down Rounds / 4

According to data from Forge, in Q3, most down rounds involved companies that last raised in 2021, reflecting the valuation bubble of
that time. Meanwhile, companies boosting post-money valuations primarily raised their last rounds in 2023. As before, down rounds
remain concentrated among those funded during the 2021 high.
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Deal Dynamics / Dilution (U.S.)

Dilution has steadily declined, hitting 5-year lows in the first half of 2024 for both early- and late-stage financings. Median late-stage
dilution dropped to just 8% in Q2, while early-stage dilution saw a slight rise to around 19% during the same period.

Median dilution by stage group

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Deal Dynamics / Dilution (Europe)

Founders in Southern Europe experienced sharper dilution, particularly at the end of 2023, reflecting tougher funding conditions compared
to the broader EU. However, these pressures are beginning to ease. The final quarter consistently proves to be a challenging time for
fundraising in the region.

Early stage dilution

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Deal Dynamics / Redemption Rights

In the first three quarters of this year, redemption rights provisions appeared in 4% of early-stage deals and 9% of late-stage deals, up from
3% and 8% in 2023. This trend is most pronounced in late-stage deals, where usage has risen well above the five-year low of 7% seen in
2021.

Prevalence of redemption rights provisions in equity financings

Snippet from the article

“ For context, redemption rights allow

investors to require the company to
repurchase their shares after a set
period, typically when an IPO or
acquisition has not occurred. The
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

increasing use of this protective

mechanism may indicate heightened
investor caution, particularly around
exit opportunities.

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Deal Dynamics / SAFE Dynamics

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Deal Dynamics / Time Between Financing Rounds

The median time between funding rounds fell to 22 months in Q2, down from 25 months in Q1. The average time also dropped, aligning
with the median, indicating fewer outlier companies taking longer to raise capital.

Months between equity financing rounds by quarter (All stage)

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Deal Dynamics / Seed to Series A / 1

Share of seed-backed startups that raised a Series A within 2 years, Seed-backed companies on Carta by post-seed funding status
by date of seed round.
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Deal Dynamics / Seed to Series A / 2

In 2018, about 28% of startups moved from Series A to Series B in under two years. For startups raising Series A in Q3 2022, that number
has dropped to just 9%. While some have pivoted to profitability or secured bridge funding, the pace of venture has clearly slowed.
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Deal Dynamics / Seed-Bridge to Series A

Startups without bridge rounds are 2x+ more likely to raise a Series A.
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Deal Dynamics / Liquidation Preferences

Participating liquidation preferences have declined in early-stage financings over the past year, while late-stage deals have seen an increase,
though this trend is leveling off. By June, 13% of late-stage financings had liquidation preference multipliers above 1x, the highest in over
five years, giving investors greater protection.

Rolling 200-day deal prevalence of Rolling 200-day deal prevalence of

participating liquidation preference liquidation preference multiples greater than 1X
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Deal Dynamics / Pay-to-Play

Pay-to-play provisions are increasingly prevalent in Series A, B, and C deals, surpassing multi-year averages, according to Aumni data. In
Series B alone, there’s been an impressive nearly 80% year-to-date increase over 2023 levels.

Prevalence of pay-to-play provisions in equity financings

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Geographic focus of the charts = U.S. Graph from Aumni. Click graph for source post. 112
SECTION

STARTUP VALUATIONS
& PERFORMANCE

IMAGE FROM ADOBE FIREFLY

Prompt given - “For those who keep valuations next to their hearts,
valuations across board are more or less moving up or are holding steady.
Most upward movement is seen in top quartile startups.”

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Index

• Valuations data • Are Some Valuations justified?

• U.S. Pre-Money Valuation by Stage and by Series • Europe - Unicorn Valuations yet to Reprice
• U.S. YoY change in valuations (by stage) • Unicorn Exit Efficiency
• U.S. Data by Quartile • Odds of Becoming a Unicorn and Exit
• U.S. Valuations Step-ups • Unicorn KPIs
• U.S. Valuations vs round size • How long does it take to achive Unicorn status?
• U.S. Data (from Carta)
• Europe Data • Performance
• A Framework for Valuations • Where are 2019 startups now?
• Seed Valuations Aren’t valuations? • SaaS revenue growth
• Seed Valuations are Too High • Public SaaS revenue growth
• Software valuations close to lows
• Unicorns • Shinny things aren't always valuable
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• VC-backed unicorn creation • Nuggets not to be missed

• Unicorn Formation (from CB Insights) • Northvolt
• More public than private unicorns
• Europe - Unicorn Formation
• Moving to the U.S. increasing likelihood
• GenAI startups attaining Unicorn Status
• Unicorn Valuations yet to Reprice

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Summary

Valuations data Unicorns

U.S. valuations Unicorn Formation

For valuation watchers, 2024 brings good news: valuations have risen CB Insights data reveals a 50% surge in unicorn formation in Q3, with 24
consistently across all stages. In H1, the VC market saw strong gains, driven new unicorns emerging. The real magic is happening in one sector: AI. As AI
by a surge in Q2 pre-money valuations. Early-stage (Seed to Series B) continues to attract more VC dollars than any other industry, it's also leading
valuations climbed 6% to 32%, while Series D+ deals soared over 150% in unicorn creation, with 13 new AI unicorns minted in Q3 alone, making it
year-over-year. the venture market’s brightest spot.

Though digging deeper another trend is visible. Venture market valuations More private than public unicorns
have improved recently, but growth is concentrated in the top quartile. Top With 1,420 unicorns in the private markets, the backlog of companies
valuations surged in H1, while median and bottom quartile values stayed waiting to go public continues to grow. Despite U.S. public markets
flat. So, while overall growth makes headlines, the recovery is driven by the performing well in 2024, even amid volatility, there are now more private
top end. unicorns than public ones, highlighting the ongoing delay in IPOs.

Valuation expectations GenAI startups attaining unicorn status faster

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Seed valuations have stayed strong despite a venture market downturn. On average, it takes unicorns just over 7 years to hit the billion-dollar mark
While deal volume has fallen, seed valuations keep climbing, unlike other —unless they’re generative AI startups. These trailblazers reach unicorn
stages, which dropped 20-40%. This raises the question: are these Seed status in just 3.9 years, a staggering 45% faster than their peers.
valuations logical or overly smoothed by biases? Even pre-seed valuations
are sparking debate, as some startups command high valuations without Europe - unicorn creation
typical KPIs. Valuation remains both art and science, requiring every investor The European unicorn landscape has expanded more than fourfold in the
to set boundaries that align with their thesis. past five years, creating a large but concentrated market. Factors like a less
saturated ecosystem, abundant capital from low interest rates, and maturing
VC markets fueled a hockey-stick growth of €1 billion+ companies, peaking
in 2021. Just five countries now account for over 70% of Europe’s unicorns.
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Europe - unicorn yet to be repriced

Of the 139 active European unicorns tracked by PitchBook, over half had
their last valuations set in 2021 or 2022. With a 1.4-year median gap
between rounds, many are due for revaluation and could see declines. In a
bear case, PitchBook estimates these unicorns could lose around 22% of
their market value.

Startup performance data

Slowing revenue growth

SaaS revenue growth has sharply declined, down 16% from its 2022 peak,
with the 30% growth target nearly disappearing. As growth slowed, sales
and marketing spend also dropped. Even the top 50 U.S. public companies
are feeling it, with growth sliding from 36% in 2022 to 20% in 2024,
impacting the sector's biggest players.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Software valuations close to lows

Public software valuations (Price/Forward sales) are playing a game of hide-
and-seek with the long-term median. Midway through 2024, it looked like
they were rebounding toward the median from their lows, but now they’ve
dipped once again.

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Valuations / U.S. Pre-Money Valuation by Stage and by Series

For those who closely track valuations, here’s some good news: across all stages and series, valuations have consistently risen in 2024,
showing growth across the board.

Median US VC pre-money valuation ($M) by stage Median pre-money valuation ($M) by series in the US
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Startup Valuations / U.S. YoY Change in Valuations (by Stage)

The venture capital market saw significant improvement in the first half of 2024, fueled by a surge in pre-money valuations in Q2. Early-
stage deals (Seed through Series B) saw median valuations rise by 6% to 32%, while Series D+ deals skyrocketed by over 150% compared
to last year. If we look at the smoothed valuation data, it is clear that valuation bottom is behind us and in some cases like Series A it seems
the valuation growth is above it’s 2022 levels.

US smoothed quarterly growth in median

YoY percent change in median pre-money valuation by stage VC pre-money valuation by series (rebased at start of Q1 2020)
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Startup Valuations / U.S. Data by Quartile

Valuations in the venture market have improved over the past few months, but the shift is happening mainly at the top quartile. While top
quartile valuations have surged across stages in the first half of the year, median and bottom quartile valuations remain flat. So, while
overall valuation growth grabs headlines, it's the top end driving the recovery.
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Startup Valuations / U.S. Valuations Step-Ups

Median valuation step-ups have leveled off after a sharp decline, signaling market stabilization as investor confidence returns and startups
experience more sustainable growth. Signaling a return to healthier levels, valuation step-ups between rounds are now approaching
pre-2020 norms. While step-ups in venture growth and early-stage deals have edged higher, both startups and investors are approaching
deals with increased caution.

US VC median valuation step-up multiples US VC median valuation step-up by series

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Startup Valuations / U.S. Valuations vs Round Size

Carta data shows a drop in deal numbers across all Series, but the impact is most striking at the Seed stage. While Seed valuations have
jumped by about 37%, the number of deals has plunged by 38% since H1 2021, highlighting a sharp contrast between rising valuations and
declining activity.
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Startup Valuations / U.S. Data (from Carta)

Seed stage valuations continued to climb in Q3, reaching $15M, with median cash raised hitting $3.8M. Series A valuations also surged,
reaching a median pre-money value of $46M—the highest since Q1 2022—with $11M in median cash raised for the quarter.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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Startup Valuations / Europe Data

Valuation values are generally skewed at upper end due to few deals. Though at other stages looks stable and steady.

Median pre-money valuation ($M) by series in Europe

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Startup Valuations / A Framework for Valuations

Frank Roman lays down a valuations framework which is rooted in fair exchange of value between VCs and Founders.
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Startup Valuations / Seed Valuations aren’t Valuations?

Seed valuations have proven resilient despite the venture market downturn. While deal volume has declined, Seed valuations continue
to rise, in stark contrast to other stages, which have seen drops of 20-40%. The author argues whether Seed valuations are real
valuations rooted in logic or are they too smoothed due to biases.
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Startup Valuations / Pre-Seed Valuations are Too High

In the last slide, we discussed how ‘Seed valuations aren’t valuations.’ Now, even pre-seed valuations are raising eyebrows as high
valuations are given to select startups that don’t necessarily match typical KPI levels. Valuation is both an art and a science, but every
investor needs to set clear boundaries on what aligns with their investment thesis.
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Unicorns / VC-backed Unicorn Creation

VC-backed unicorn created monthly by HQ region

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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Unicorns / Unicorn Formation

CB Insights data reveals a 50% surge in unicorn formation in Q3, with 24 new unicorns emerging. The real magic is happening in one sector:
AI. As AI continues to attract more VC dollars than any other industry, it's also leading in unicorn creation, with 13 new AI unicorns minted
in Q3 alone, making it the venture market’s brightest spot.

Quarterly new & total unicorns (private companies valued at $1b+)

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Unicorns / More Private Than Public Unicorns

With 1,420 unicorns in the private markets, the backlog of companies waiting to go public continues to grow. Despite U.S. public markets
performing well in 2024, even amid volatility, there are now more private unicorns than public ones, highlighting the ongoing delay in IPOs.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graph from COATUE. Click for source post. 129

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Unicorns / Europe - Unicorn Creation

The European unicorn landscape has expanded more than fourfold in the past five years, creating a large but concentrated market. Factors
like a less saturated ecosystem, abundant capital from low interest rates, and maturing VC markets fueled a hockey-stick growth of unicorn
companies, peaking in 2021. Just five countries now account for over 70% of Europe’s unicorns.

Aggregate unicorn value and count

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Unicorns / Moving to the U.S. Increasing the Unicorn Likelihood

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Unicorns / GenAI Startups Attaining Unicorn Status

On average, it takes unicorns just over 7 years to hit the billion-dollar mark—unless they’re generative AI startups - where startups reach
unicorn status in just 3.9 years, a staggering 45% faster than their peers.
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Data from CB Insights, as of March 20, 2024. 132

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Unicorns / Valuations Yet to be Repriced

In the 2021 and 2022 cohort a considerable number of startups are yet to be re-priced and haven’t even raised. It is likely that many of
them might not raise again.
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Graph from COATUE. Click for source post. 133

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Unicorns / Are Some Valuations Justified?

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Unicorn / Europe - Valuations Yet to be Repriced

Of the 139 active European unicorns tracked by PitchBook, over half had their valuations last set in 2021 or 2022. With a median gap of 1.4
years between rounds, many are overdue for financing and could soon face market revaluation. A significant portion of these unicorns may
see their valuations take a hit in the near future. In a bear case scenario, PitchBook expects approx 22% of market value of these unicorns to
be lost.

Bear-to-bull unicorn value step-downs

21.8% drop 5.9% drop

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Unicorns / Unicorn Exit Efficiency

When it comes to unicorn exits as a measure of efficiency, the U.S. sees 16% (148) of its unicorn startups successfully exit. However, China
leads the way, with 26% of its unicorns achieving exits.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Unicorn Exits, Top 5 Countries Jan ’16 - Jul ’24

Box = # of exits and % of all unicorns in that country

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Unicorns / Odds of Becoming a Unicorn and Having an Exit

Startups in Application-Specific Semiconductors have a 1 in 60 chance of becoming unicorns and 1 in 251 for an exit. In Business/
Productivity Software, the odds are 1 in 222 for unicorns, but only 1 in 2,458 for an exit.

Jan '16-Jul ’24 (Ranked by Better Odds of Unicorn)

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Unicorns / Unicorn KPIs

The gap in unicorn count between the 1st, 2nd, and 3rd ranking countries is substantial, while other nations are much closer in numbers.
For KPIs like average time to unicorn, Germany and France lead with the fastest unicorn creators, fueled by a strong VC push over the past
five years.
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Unicorns / How Long Does it Take to Achieve Unicorn Status ?

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Unicorns / Top Verticals by Deal Value (Europe)

Top 10 Verticals ranked by deal value from 2014-2024*

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Big Book analysis. Geographic focus of the chart = Europe. Data from PitchBook. 140
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Startup Performance / Where Are 2019 Startups Now?

Carta’s tracking of 2019 startups offers a clear look at their journey: only 54% remain active, and true to the venture power law, just 4%
achieved an M&A exit, with a slim 0.2% reaching IPO.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from Carta. Click for source post. 141
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Startup Performance / SaaS Revenue Growth

SaaS companies have seen a sharp decline in revenue growth, dropping 16% from their 2022 peak. The once-common 30% revenue growth
target has nearly vanished. As growth slowed, SaaS companies have also pulled back significantly on sales and marketing spending.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

1st graph from Bain and 2nd from COATUE. Click for source post. 142
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Startup Performance / Public SaaS Revenue Growth

Even the top 50 U.S. public companies aren't escaping the revenue decline, showing a steady drop in growth from 36% at its peak in 2022 to
just 20% in 2024. The downward trend is affecting even the biggest players.

Public SaaS revenue growth slows Modest expectations for SaaS sales
Median revenue growth for the top 50 U.S. public SaaS companies Top 50 U.S. public SaaS: revenue multiples (TEV/TM revenue)
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Total Enterprise Value/ Next Twelve Months Revenue.

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Startup Performance / Software Valuations Close to Lows

Software valuations are playing a game of hide-and-seek with the long-term median. Midway through 2024, it looked like they were
rebounding toward the median from their lows, but now they’ve dipped once again.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

1st graph from COATUE and 2nd from MeriTech newsletter dated October 9th. Click for source post. 144
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Startup Performance / Shinny Things Aren’t Always Valuable

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Startup Performance / Nuggets Not to be Missed - 1

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Startup Performance / Nuggets Not to be Missed - 2

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Startup Performance / Northvolt

Once the rising star of European ClimateTech dream Northvolt hit recently a rough patch. According to WirtschaftsWoche, a German
business magazine - “Too much, too fast: Northvolt's problems range from incompetent management and poor safety standards to over-
reliance on Chinese machinery, according to current and former employees of the cash-strapped Swedish battery maker.”
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SECTION

STARTUP EXITS

IMAGE FROM ADOBE FIREFLY

Prompt given - “Global exits, including M&As and IPOs, showed no
recovery in Q3, and exit dollar volume hit its lowest point since early 2018.
VC exits are increasingly loss-making.”
Image using ‘Chaotic’ effect.

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Index

• Exit data • India King of IPO Boom • Startup Age at Acquisition

• Global Data (CB Insights) • U.S. - Tech IPOs • Price Paid vs. Capital Riased
• Global Data (PitchBook) • VC Backed Startups Going IPO • Capital Riased at M&A and Acquisition Ticket
• U.S. Exit Data • Impact of U.S. Election Size
• U.S. - Short vs Long Term Trends in Exits • Long Journey to Become Profitable Post-IPO • M&A Who's Winning
• Asian Exit Data • Performance since IPOing • Takeover Candidates
• European Exit Data • Small-Scaled IPOs
Secondary markets
• Best Exit is Still an IPO
M&As • New Funds and Funadraising
• Exits are increasingly loss making
• Global Acquisition Data (including Tech) • Premiums and Discounts
• Exits are increasingly loss making at Seed
stage • Global Acquisition Data (Crunchbase) • Bid-Ask Spreads
• Generalist vs Specialist VC • Global Startup M&A Data (over Time) • Demand
• Factors aiming to reignite VC exit • U.S. M&A Data • How to do Secondaries
environment • U.S. - Startups Buying Startups • Case for Secondaries
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• Nuggets not to be Missed • PE Buyers are Knocking on the Doors

• PE Dry Powder can Unlock a lot of Acquisitions
IPOs
• PE is the New VC
• Global IPO activity (inlcuding Tech)
• Scope Deal and Acqusitions
• King of Market Size
• Global - Top Acquirers by Company and
• Sectoral dynamics Region
• Tech Pipeline • Regular Players aren't Doing M&A Anymore

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Summary

Exit data Europe exit trends

Europe’s VC exit market is finally showing signs of recovery, with exit value
Global exits rebounding to €26.2 billion by the end of Q3. Nearly half of this came from
Global exit counts, including M&As and IPOs, stayed flat in Q3, showing no Spanish beauty giant Puig’s €12.5 billion IPO. Even without Puig’s listing,
signs of recovery. Regional exit shares also remained unchanged. However, Europe is still on track to surpass last year’s exit value, signaling a strong
exit dollar volume dropped to its lowest since Q1 2018—a troubling upward trend.
indicator for VC market recovery. PitchBook data reveals exit numbers have
declined to levels last seen in Q2 2020 or Q3 2018, dampening market Exits increasingly loss making
optimism. Based on yearly data, 2024 is unlikely to match 2023’s exit The percentage of exits where VCs recovered less than their initial
volumes or counts, falling short of early-year expectations. investment is at its highest since the 2007-09 financial crisis. Exits remain
low, driving up loss ratios, with a striking 85% of Seed-stage exits at a loss,
U.S. exit trends surpassing pre-pandemic levels. Other stages have returned to pre-
Exit counts tell a mixed story: CB Insights shows a slight Q3 dip, while pandemic norms, but the overall impact is substantial.
PitchBook reports a larger drop. However, exit dollar volume in 2024 is set
to surpass 2023, hinting at a brighter outlook. Though both counts and Generalist vs. Specialist VC
volumes are still below long-term trends, recent upticks suggest potential VC investor domain expertise plays a crucial role, boosting the likelihood of
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

for a rebound in 2025. successful exits by 1.2x when lead investors have deep knowledge.
However, this edge varies across industries and isn’t consistent in all
Asia exit trends verticals.
Asia’s outlook is improving, with M&A numbers and exit dollar volumes
rising over the last two quarters. While 2024 began at its lowest exit volume Factors that can re-ignite the VC exit environment
since 2018, data suggests a recovery may be underway. However, yearly Investors say falling interest rates and stock market gains are key to
data shows Asia’s exit downturn mirrors the global trend, with exit dollar unlocking the VC exit environment. On the company side, more quality IPO
volume lagging significantly since 2022, reflecting a notable drop in value filings and a reset in valuation expectations are the top priorities for
despite stable deal activity. sparking a wave of exits.

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IPOs Q3, also the IPO scene stirred with AI chipmaker Cerebras, an NVIDIA rival,
filing its S-1. Yet, a U.S. national security review involving UAE investor G42
Global IPO trends (including Technology) has cast uncertainty over its timeline. Looking to 2025, easing pre-election
In Q3 2024, global IPOs rose 11% from the previous quarter despite a yearly tensions could restore investor confidence, with several high-profile
decline, with PE and VC-backed IPOs making up six of the top 10 and a companies eyeing IPOs as early as next year.
third of total proceeds. In the Americas, they accounted for 52%, with the
U.S. and India seeing strong activity; India set a 20-year record with over Long Journey to Become Profitable Post-IPO
100 IPOs. Despite recession concerns, the U.S. remains the top global In most cases, even the most valuable venture-backed tech companies went
market, with record market capitalization gaps over China and high investor public before becoming profitable. Though they eventually turned a profit,
confidence in mega IPOs. As sectors broaden with the easing cycle, AI IPOs it often took time to get there.
remain hot, averaging 60 per year with nearly half profitable. This year, 50 AI
companies are set for IPOs, underscoring robust interest despite profitability Performance since IPOing
challenges. The Indian IPO market has surged in 2024, with a 70% rise in An analysis of the 15 largest tech IPOs since 2022 reveals that most (10 out
IPOs and a 135% jump in proceeds compared to 2023. No other region of 15) have either maintained or increased their value after going public—a
comes close to matching this explosive growth. promising sign for the tech IPO market. AI has been a key driver of growth
for many of these companies, fueling their post-IPO success.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Tech IPO Pipeline

Tech IPOs are in short supply. The 2022-24 period has been historically M&As
disappointing, with VC and PE-backed startups still missing a major
breakthrough in public listings. Despite a market rebound, IPO numbers Global M&A trend (including Tech)
remain far below historical averages. Despite a public market rebound, VC In Q3 2024, the U.S. Federal Reserve cut interest rates by half a point,
and PE-backed startups are still struggling with public listings, well below sparking optimism for 2025. While VC and IPO impacts are muted, the cut
historical averages. The IPO window for 2024 is tightening, with only 8 could boost M&A as buyers reconsider earlier deals. Globally, M&A is
venture-backed IPOs on U.S. exchanges in Q3, mostly in biotech—marking already on the rise, with deal value up 27.6% and deal count up 13.3% year-
the lowest quarter by proceeds this year and a 50% drop from last year. In over-year.
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Startup M&A trends from Fortune top 500 companies M&A exit multiples
From surge to slowdown: Tech startup acquisitions have transformed. The exit landscape is defined by a power law: a few unicorns, many fire
Between 2015 and 2021, Fortune Global 500 companies acquired 150-200 sales. A striking 71% of deals yield multiples below 1 or go undisclosed,
startups annually, investing $50-60 billion. After a 2021 peak, deals fell to signaling smaller acquihires or fire sales. Roughly 10% deliver modest
145 in 2022 ($38.1 billion) and dropped further to 111 in 2023, with total returns (1-5x), 19% provide solid returns (5x+), while the rare 100x payouts—
investment rising to $62.1 billion—highlighting a shift to fewer but larger true unicorns—occur in just 1 out of 100 deals.
deals.
Startup capital raised at M&A
Startups buying startups For acquired, funded startups, the median raise ranges from $10 million to
Startup-to-startup acquisitions now lead U.S. VC-backed M&A, driven by a $50 million. Acqui-hires (under $5 million raised) make up 27% of deals,
liquidity-hungry market amid stalled IPOs and slow exits. With 252 deals, while ‘scalers’ ($100 million to $1 billion) represent 12%. Rare ‘super scalers’
these transactions make up 39% of U.S. startup M&A—the highest share in (over $1 billion) account for just 1% of acquisitions.
over a decade.
Secondaries
PE buyers
PE firms are ramping up buyouts of VC-backed startups as add-ons for The median discount to the last primary round has risen to -12% to -21%,
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

platform companies. By Q3 2024, these buyouts accounted for 21.8% of with continuous upward movement. Meanwhile, top-tier companies (75th
VC-backed exits, nearly matching last year. This momentum is expected to percentile) saw a 14% median premium over their last funding round,
grow, particularly within middle-market PE and venture capital. marking four consecutive months of positive gains—hinting that "The Great
Reset" may be winding down. The bid/ask spread closed Q3 at a two-year
Startup Age at Acquisition low of 5.5%, down from July's 16% spike, suggesting stronger buyer-seller
Startups are typically acquired around six years post-founding. Corporations alignment and increased transaction likelihood, signaling improved market
favor younger, high-growth companies, with 46% of acquisitions targeting stability.
those five years old or younger, 35% involving startups aged 6-10 years, and
under 20% focused on more mature businesses.

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Exit Data / Global (CB Insights)

Global exit counts, including M&As and IPOs, remained steady in Q3, showing no significant change or recovery compared to the previous
two quarters. Regional exit shares also held steady, with no major deviations from earlier trends.

Quarterly exits Percent of quarterly exits by global region

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Geographic focus of both charts = Global. Graphs from CB Insights. Click for source post. 154
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Exit Data / Global (PitchBook)

The narrative shifts when we look at exit dollar volume, which has plunged to levels not seen since Q1 2018—a worrying sign for venture
capital market recovery. PitchBook data shows the number of exits has also dropped, hitting lows last seen in Q2 2020 or Q3 2018, further
dampening market optimism.

Global venture-backed exit activity

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Geographic focus of the chart = Global. Graph from KPMG. Click for source post. 155
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Exit Data / Global (PitchBook)

Looking at the Global yearly data from PitchBook, it's clear that 2024 is unlikely to match the exit deal volume or numbers of 2023. At best,
we might come close, but this is far from the optimistic expectations many had at the start of the year.

Global venture-backed exit activity (#) by type Global venture-backed exit activity ($B) by type
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Geographic focus of both charts = Global. Graphs from KPMG. Click for source post. 156
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Exit Data / U.S. Exits Data

Exit counts present a mixed picture from two data sources. CB Insights shows a slight dip in Q3 exits, while PitchBook reports a more
significant drop. However, when it comes to exit dollar volume, 2024 is on track to outperform 2023, offering a brighter outlook overall.

Quarterly exits / U.S. US VC exit activity

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Geographic focus of both charts = U.S. 1st graph from CB Insights and 2nd from PitchBook. Click for source post. 157
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Exit Data / Short vs Long Term Trends in U.S. VC Exits

Both exit counts and dollar volumes remain well below the long-term trend, though recent signs of a slight uptick offer some optimism for a
rebound in 2025.

VC exit value short- and long-term trends VC exit count short- and long-term trends
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. Data from PitchBook, as of July 31, 2024. 158
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Exit Data / Asian Exits Data / 1

Asia presents a more promising outlook, with rising M&A numbers and exit dollar volumes over the past two quarters. Though 2024 started
with exit volumes at their lowest since Q1 2018 or 2019, the data suggests they've bottomed out and are now on a path to recovery.

Quarterly exits / Asia Venture-backed exit activity in Asia

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Geographic focus of both charts = Asia. 1st graph from CB Insights and 2nd from PitchBook. Click for source post. 159
 SECTION - STARTUP EXITS

Exit Data / Asian Exits Data / 2

Zooming out on PitchBook's yearly data, the exit downturn in Asia mirrors the global trend. While exit numbers for 2024 might reach 2023
levels by year’s end, the real story lies in exit dollar volume, which has significantly lagged behind. This declining trend has been ongoing
since 2022, highlighting a substantial drop in value despite steady deal activity.

Venture-backed exit activity (#) by type in Asia Venture-backed exit activity ($B) by type in Asia
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Graphs from KPMG. Click for source post. 160
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Exit Data / Europe / 1

Europe’s VC exit market is finally showing signs of recovery, with exit value rebounding to €26.2 billion by the end of Q3. Nearly half of this
came from Spanish beauty giant Puig’s €12.5 billion IPO. Even without Puig’s listing, Europe is still on track to surpass last year’s exit value,
signaling a strong upward trend.

Venture-backed exit activity (#) by type in Europe Venture-backed exit activity ($B) by type in Europe
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Graphs from KPMG. Click for source post. 161
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Exit Data / Europe / 2

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Geographic focus of both charts = Europe. Graphs from CB Insights. Click for source post. 162
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M&A / Best Exit is Still an IPO

Comparing public trading multiples with M&A multiples offers insight into exit valuations: companies tend to command higher valuations in
public markets than through M&A.

Public company trading multiples versus M&A multiples (EV/EBITDA) Public company trading multiples versus M&A multiples (EV/revenue)
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graphs from PitchBook. Click for source post. 163

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Exit Data / Exits Increasingly Loss Making

The percentage of exits where VCs recouped less than their initial investment is at its highest point since the global financial crisis of
2007-09.

The percentage of US VC exits with a less than 1x multiple on invested capital is on the rise
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Graphs from PitchBook. Click for source post. 164

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Exit Data / Exits Increasingly Loss Making at Seed Stage

Not only are exits low, but this exit drought is driving up loss ratios across all stages. A staggering 85% of Seed-stage exits were done at a
loss, surpassing pre-pandemic levels. For other stages, loss ratios have returned to pre-pandemic norms, but the overall impact remains
significant.

Portion of deals with 0-1X MOIC by exit year cohort

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Big Book analysis. Data from PitchBook. 165

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Exit Data / Generalist vs Specialist VC - Who Has Better Chance for Successful Exit?

VC investor domain expertise matters, but its impact varies by industry. Deals with lead investors who had high domain expertise were 1.2x
more likely to result in successful exits (via acquisition or IPO) than those with less knowledgeable investors. However, this advantage isn’t
consistent across all verticals.
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Geographic focus of chart = Global. Graph from PitchBook. Click for source post. 166
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Exit Data / Factors Aiming to Reignite VC Exit Environment

Investors say falling interest rates and stock market gains are key to unlocking the VC exit environment. On the company side, more quality
IPO filings and a reset in valuation expectations are the top priorities for sparking a wave of exits.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Decline in Resetting of Broad stock market Better companies

interest rates valuation expectations gains and multiple Filing for IPO
expansion

Big Book analysis. Data from PitchBook. 167

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Exits / Nuggets Not to be Missed

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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IPOs / Global IPO Activity (including Tech)

In Q3 2024, global IPO activity defied the downturn, launching 11% more IPOs than the previous quarter despite a year-over-year decline.
PE and VC-backed IPOs dominated, making up six of the top 10 globally and one-third of total proceeds. In the Americas, they accounted for
52% of proceeds, showing a stronger appetite for exits. Notably, the U.S. and India saw heightened activity, with India hitting a 20-year
record by launching over 100 IPOs in the quarter.

2022–Q3 2024 global IPO activity by quarter IPO activity review

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Graphs from EY. Click for source post. 169
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IPOs / King of Market Size

Despite recession concerns, the U.S. remains the most stable and attractive market for global investors in 2024. The market capitalization
gap between the U.S. and China has hit a record high, with the U.S. outperforming global peers, even as India and Japan see strong growth.
Elevated liquidity and valuation multiples have fueled investor confidence, especially in mega IPOs. Year-to-date IPO returns have
consistently matched or surpassed benchmark index returns, signaling strong investor confidence despite uncertainty.

Market cap by major IPO markets (US$t) YTD IPO returns vs. benchmark index returns
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Graphs from EY. Click for source post. 170
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IPOs / Sectoral Dynamics

As the easing cycle begins, sectors are broadening, offering more diverse investment opportunities. Over the past two years, more than 60 AI
companies have gone public annually, with about half turning a profit. Recent IPOs have nearly doubled the market capitalization of AI
companies listed the year before. Currently, around 50 AI companies are in IPO registration, with one-third being profitable, reflecting strong
investor interest in AI despite profitability challenges.

Sector global share by proceeds (%) YTD IPO pipeline by sector and by area
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Graphs from EY. Click for source post. 171
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IPOs / Tech Pipeline

In Q3, the IPO scene stirred with AI chipmaker Cerebras, an NVIDIA rival, filing its S-1. Yet, a U.S. national security review involving UAE
investor G42 has cast uncertainty over its timeline. Looking to 2025, easing pre-election tensions could restore investor confidence, with
several high-profile companies eyeing IPOs as early as next year.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Chart from Forge. Click for source post. 172

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IPOs / India - King of IPO Boom

The Indian IPO market (including Tech) has surged in 2024, with a 70% rise in IPOs and a 135% jump in proceeds compared to 2023. No
other region comes close to matching this explosive growth.

Sector global share by proceeds (%)

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the charts = Global. Graph from EY. Click for source post. 173
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IPO / U.S. Tech IPOs

There’s just too few tech IPOs. 2022-24 phase has been extremely disappointing on a historically basis.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graph from COATUE. Click for source post. 174

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IPOs / VC Backed Startups Going IPO

Despite a rebound in public market performance, VC and PE-backed startups have yet to see a major breakthrough in public listings. In fact,
the numbers remain significantly below historical averages.

Monthly PE- and VC-backed public listing count

Snippet from the article

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

“ The IPO window for 2024 is really starting to narrow now.

In Q3 just 8 venture-backed IPOs took place on U.S.
exchanges, with biotech dominating, generating $1.1
billion, per Renaissance. That was the lowest quarter by
proceeds this year and a 50% decline from a year earlier.

Geographic focus of both charts = U.S. Data from PitchBook, as of August 31, 2024. 175
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IPOs / U.S. Election Season

Snippet from the article

“ In the past four presidential election years, IPO activity picked up the
following year. The increases followed the election of two Democratic
presidents, Barack Obama (for two terms) and Joe Biden, and one
Republican, Donald Trump.

Market cycles matter too - For instance, the year that had the greatest
number of new offerings was 2021. At the time, both public tech
company valuations and venture investment were hitting historic highs.
Markets were already heating up in the 2020 election year, and the
momentum intensified for several more quarters.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

As we look at 2024’s IPO pace, however, broader market performance

doesn’t really explain why activity is down. So far this year, just 32 U.S.
venture-backed companies have gone public. That puts 2024 on track
to be one of the slowest IPO markets in years.

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IPOs / Long Journey to Become Profitable Post-IPO

In most cases, even the most valuable venture-backed tech companies went public before becoming profitable. Though they eventually
turned a profit, it often took time to get there.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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IPOs / Performance Since IPOing

An analysis of the 15 largest tech IPOs since 2022 reveals that most (10 out of 15) have either maintained or increased their value after
going public—a promising sign for the tech IPO market. AI has been a key driver of growth for many of these companies, fueling their post-
IPO success.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Chart from CB Insights. Click for source post. 178

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IPOs / Small-Scaled IPOs

By the end of last year, many expected a wave of small-scale IPOs. However, this prediction largely missed the mark, with only a few
exceptions.
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M&A / Global Acquisitions Data (including Tech)

In Q3’24, the U.S. Federal Reserve cut its key interest rate by half a point. While the impact on VC investment and IPOs has been muted, it’s
fueling optimism for 2025. The rate cut could boost M&A activity, as buyers revisit deals that didn't make sense six months ago. Additional
cuts could drive even more M&A. Globally, M&A activity is already gaining momentum, with deal value up 27.6% and deal count up 13.3%
year-over-year.

M&A activity by quarter

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

This is global data including Tech. Hence the focus is not just VC backed startups but overall M&A market

Graph from PitchBook. Click for source post. 180

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M&A / Global Acquisitions Data

On average only 16% of of the global M&A deals have a disclosed price.

Venture-Backed Companies Acquired Globally, By Year

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graph from Crunchbase. Click for source post. 181

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M&A / Global - Startup M&A Data Over Time (Fortune top 500 companies)

From surge to slowdown: The landscape of tech startup acquisitions has shifted. Between 2015 and 2021, Fortune Global 500 companies
acquired 150-200 startups annually, investing $50-60 billion. After peaking in 2021, deals sharply declined, falling to 145 in 2022 with
$38.1 billion invested. By 2023, deals dropped further to 111, but total investment surged to $62.1 billion, signaling a trend toward fewer
but larger acquisitions.

Global startup M&A in time

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from MindtheBridge. Click for source post. 182
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M&A / U.S. - M&A

In Q3, exits remained sluggish, generating $10.4 billion across 243 events—the lowest quarterly exit value in five quarters. Notably, only two
exits exceeded $1 billion, both via acquisition, with healthcare dominating the top 10. Buyouts climbed to 21.8% of VC-backed exits,
matching last year, and are expected to persist in the middle-market PE and VC space. Small M&As offered little relief, with exits under $50
million down significantly in 2024.

Quarterly VC exit value ($B) by type Share of VC exit count by size bucket
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Both charts from PitchBook. Click for source post. 183

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M&A / U.S. - Startups Buying Startups

Startups acquiring other startups are set to claim the largest share of M&A deals in years among U.S. VC-backed companies. In today’s
environment—where VCs and LPs are hungry for liquidity amid a stalled IPO market and slow M&A activity—this is a significant trend. With
252 deals, startup-to-startup acquisitions now account for 39% of all U.S. startup M&A activity, the highest percentage in over a decade.

Number of deals in which VC-backed startups bought VC-backed startups in the U.S.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. 1st graph from Crunchbase and 2nd from PitchBook. Click graphs for source post. 184
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M&A / PE Buyers are Knocking on the Doors

PE firms are increasingly targeting VC-backed startups as add-ons for their platform companies. By Q3 2024, buyouts made up 21.8% of all
VC-backed exits, nearly matching last year's levels. We expect this buyout momentum to continue, especially at the intersection of middle-
market PE and venture capital.

PE growth activity in VC-backed companies Share of VC exit count by type

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Big Book analysis. Data from PitchBook. 185

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M&A / PE Dry Powder Can Unlock a Lot of Acquisitions

PE operates differently from VC, often taking controlling stakes, steering company direction, and sometimes engaging in asset stripping
to realize profits. Unlike VCs, which generally take minority stakes and invest in high-growth, early-stage companies, PE firms focus on
mature, stable businesses, deploying larger capital without the expectation of hypergrowth or 10x exits. With PE holding massive dry
powder reserves, there’s strong potential to drive buyout exits for growth-stage, revenue-generating startups. We’ve seen some of this in
2024, with buyouts rising as a share of total exits, but the opportunity for significant scale remains.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graph from COATUE. Click for source post. 186

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M&A / Global - Private Equity Might be the New VC

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187
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M&A / Global - Scope Deals and Acquisitions

As regulatory hurdles increased for large-scale tech acquisitions, companies shifted their M&A focus to scope deals, aimed at acquiring new
capabilities, products, or markets. This shift has been so significant that, over the past six years, scope deals have made up nearly 80% of all
tech industry M&A— a larger share than in most other sectors.
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Geographic focus of chart = Global. Graph from Bain. Click for source post. 188
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M&A / Global - Top Acquirers by Company and Region

The narrow world of global startup M&As and U.S. dominance.

World’s top 25 startup acquirers World’ top acquirers by macro region

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Geographic focus of both charts = Global. Graphs from MindtheBridge. Click for source post. 189
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M&A / Regular Players Aren’t Doing M&A Anymore

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190
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M&A / Global - Startup Age at Acquisition

On average, startups are acquired about six years after their founding. Corporations favor younger, fast-growing companies, with 46% of
acquisitions targeting startups five years old or younger. Another 35% involved companies aged 6 to 10 years, while fewer than 20% were
more mature businesses.

Startup age at acquisition

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Geographic focus of the chart = Global. Graph from MindtheBridge. Click for source post. 191
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M&A / Exit Multiples: Price Paid vs Capital Raised

The exit landscape follows a power law: few unicorns, many fire sales. A striking 71% of deals end with multiples below 1 or are
undisclosed, often signaling smaller acquihires or fire sales. Around 10% of deals offer modest returns (1-5x), while 19% deliver solid
returns of 5x or more. Exceptional payouts—100x multiples—are the rarest, happening in just 1 out of 100 deals, making them the true
unicorns of M&A.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = Global. Graph from MindtheBridge. Click for source post. 192
 SECTION - STARTUP EXITS

M&A / Startup Capital Raised at M&A and Acquisition Ticket Size

Among acquired startups that raised funding, the median amount raised falls between $10 million and $50 million. Acqui-hires, involving
companies that raised less than $5 million, account for 27% of acquisitions. Startups that raised between $100 million and $1 billion, known
as ‘scalers,’ make up 12%. Acquisitions of tech giants, or ‘super scalers’ with over $1 billion raised, are rare, representing just 1% of all deals.

Startup capital raised at acquisition Ticket price

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Graphs from MindtheBridge. Click for source post. 193
 SECTION - STARTUP EXITS

M&A / Who’s Winning?

Companies that excel at consistently adding new businesses to their portfolios are the top performers. While studies show that 70% of
mergers fail, and Bain’s own surveys reveal that around 60% of deals fall short of internal expectations, those that master frequent
acquisitions see the best results.

Frequent acquirers are gaining a performance advantage over time

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from Bain. Click for source post. 194
 SECTION - STARTUP EXITS

M&A / Takeover Candidates

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

195
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Secondaries / New Funds and Fundraising

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

196
 SECTION - STARTUP EXITS

Secondaries / Returns on Secondary Deals

Expected returns and discounts on venture secondary deals (as of H1 2024)

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

197
 SECTION - STARTUP EXITS

Secondaries / Premium-Discounts in Secondary Deals

The median discount to the last primary round hit a range of -12% to -21%. It has been on continuous upward movement. Meanwhile,
companies in the top 75th percentile traded at a 14% median premium over their last funding round, staying positive for four
consecutive months. While only time will confirm, a consistent median premium could signal that the era of "The Great Reset" is
nearing its end.

Median and average secondary premium/discount to last VC round Distribution of Trade Premiums/Discounts to Last Primary Funding Round
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graph from Forge. Click for source post. 198

 SECTION - STARTUP EXITS

Secondaries / Bid-Ask Spreads in Secondary Deals

The bid/ask spread ended Q3 at a two-year low of 5.5%, down from a July spike of 16%. This decrease hints at stronger buyer-seller
consensus on pricing and a higher likelihood of transactions, reflecting improved market stability.

Distribution of Trade Premiums/Discounts to Last Primary Funding Round

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graph from Forge. Click for source post. 199

 SECTION - STARTUP EXITS

Secondaries / Demand
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

200
 SECTION - STARTUP EXITS

Secondaries / How Secondaries are Getting Done?

Snippet from the TechCrunch article (Link) Partial sale to unlock distributions

“ Part of those deals are happening the traditional way, with

investors buying previous owners’ shares with the consent of the
company. Other investors are raising special purpose vehicles
(SPVs), or vehicles raised to back a specific asset, to gain access to
secondaries deals of hot companies. In rarer cases, some investors
are even buying into other firms’ SPVs to get a piece of the
action.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

201
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Secondaries / Case for Secondaries

Net IRR dispersion, by asset class (vintage years 2000-19, as of Q2 2023)

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

202
SECTION

TALENT

IMAGE FROM ADOBE FIREFLY

Prompt given - “Tech layoffs have eased from 2023 levels but are still on
track to outpace 2022. Unicorns have sharply reduced headcount growth
to just 10%, down from the 75% surge in 2022. Remote work flexibility is
also tightening”

203
 SECTION - TALENT

Index

Data • Indian Unicorn Founders are Increasingly Homegrown

• Compensation Data • Nuggest Not to be Missed

Startup talent Venture capital talent

• Layoffs • Junior VC Talent
• Headcount Growth • Talent Churn
• Remote Jobs (Product) are Decreasing • Talent Transition
• Being a Founder is Hard • Leanring about VC
• Strenghts and Weaknesses that Sets Founders Apart
• Are You Meant to be a Founder
• Burnout
• Manager Level Talent in Startups is Struggling
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• Tech Alumni Mafia

• Most Alumni Founders Coming from Product or
Engineering
• Startup Alumni Networks Building New Startups
• Harrasment, Diveristy, and More
• Repeat Founders and Unicorns
• Employee Equity
• Employee Equity - UK
204
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Summary

Startup talent concerning, over a third of managers fail to support their teams with career
development.
Tech layoffs
Tech layoffs in 2024 have been lower compared to 2023, though they’re still Straights and Weakness that Set Founders Apart
on track to surpass 2022 levels. Unicorns, in particular, have significantly The HBR article defines, there key areas - (1) Cognitive Patterns: Founders
scaled back, with headcount growth dropping to just 10%, a stark contrast think in more divergent, non-linear ways, (2)Motivational Drivers: Founders’
to the 75% surge seen at the peak of 2022. sense of purpose and persistence are deeply ingrained (often stemming
from childhood), driving them to push boundaries that others consider
Remote jobs impossible, (3) Relational Styles: Founders tend to remain closely connected
The job market is becoming less flexible, especially regarding remote work. with their trusted inner circles, showing more skepticism toward outsiders,
Big Tech giants like Amazon have already rolled back COVID-era work-from- which can inspire fierce loyalty while simultaneously leading to difficulties in
home policies, mandating a full five days a week in the office, signaling a professional detachment.
shift back to pre-pandemic norms.
Harassment, Diversity, and More
Being a founder is hard Over 50% of startup employees report feeling bullied, harassed, or
The founder's journey is becoming tougher than ever. With endless sources discriminated against by their managers. On the diversity front, employees
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

of advice—often not fully relevant—founders must sift through it all to find note growing barriers to promotions and leadership roles for people of color
what works for them. But every journey is unique, and the real enthusiasm and women, highlighting significant challenges in workplace inclusion and
killer is this: more and more founders are exiting their startups with almost advancement.
nothing to show for it, walking away nearly empty-handed.
Venture capital talent
Manager-level talent within startups is struggling
It appears many startup managers aren’t fully prepared for their roles, and No big changes here. The same trend of VC talent churn continues, whether
the stats are eye-opening. A staggering 63% of startup employees believe the talent transitions to a founder role or operating role or hops one to start
only a small fraction of their managers are equipped for the job. Even more their own VC fund.
205
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Talent / Compensation Data

VC compensation in Europe Salaries in Product Management (U.S. focus)

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

206
 SECTION - TALENT

Startup Talent / Layoffs

Tech layoffs in 2024 have been lower compared to 2023, though they’re still on track to surpass 2022 levels.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

1st chart from Coatue. Data on second image is from Crunchbase. 207
 SECTION - TALENT

Startup Talent / Headcount Growth

Unicorns, in particular, have significantly scaled back, with headcount growth dropping to just 10%, a stark contrast to the 75% surge seen
at the peak of 2022.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

1st chart from Coatue. Data on second image is from Crunchbase. 208
 SECTION - TALENT

Startup Talent / Remote Jobs (Product) are Decreasing

The job market is becoming less flexible, especially regarding remote work. Big Tech giants like Amazon have already rolled back COVID-era
work-from-home policies, mandating a full five days a week in the office, signaling a shift back to pre-pandemic norms.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

209
 SECTION - TALENT

Startup Talent / Being a Founder is Hard

The founder's journey is becoming tougher than ever. With endless sources of advice—often not fully relevant—founders must sift through it
all to find what works for them. But every journey is unique, and the real enthusiasm killer is this: more and more founders are exiting their
startups with almost nothing to show for it, walking away nearly empty-handed.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

210
 SECTION - TALENT

Startup Talent / Strenghts and Weaknesses That Set Founders Apart

The HBR article defines, there key areas - (1) Cognitive Patterns: Founders think in more divergent, non-linear ways, (2)Motivational
Drivers: Founders’ sense of purpose and persistence are deeply ingrained (often stemming from childhood), driving them to push boundaries
that others consider impossible, (3) Relational Styles: Founders tend to remain closely connected with their trusted inner circles, showing
more skepticism toward outsiders, which can inspire fierce loyalty while simultaneously leading to difficulties in professional detachment.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

211
 SECTION - TALENT

Startup Talent / Are You Meant to Be a Founder?

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

212
 SECTION - TALENT

Startup Talent / Burnout

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213
 SECTION - TALENT

Startup Talent / Manager-level Talent Within Startups is Struggling

It appears many startup managers aren’t fully prepared for their roles, and the stats are eye-opening. A staggering 63% of startup employees
believe only a small fraction of their managers are equipped for the job. Even more concerning, over a third of managers fail to support their
teams with career development.

63% of startup employees said only a minority of Over a third of startup managers don't help their
their managers were ready for the role reports with career development
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

214
 SECTION - TALENT

Startup Talent / Tech Alumni Mafias

Everyone must have heard to Paypal mafia, or Uber mafia. But now there is Palantir mafia. Of the 98 VC-backed fintech unicorns in
Europe, 82 have fuelled 625 new tech-enabled startups across Europe and Israel with Klarna leading the pack with 62 second
generation startups.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

215
 SECTION - TALENT

Startup Talent / Alumni Founders

Most Alumni Founders Coming From Product or Engineering Startup Alumni Networks Building New Startups
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

216
 SECTION - TALENT

Startup Talent / Harassment, Diversity, and More

Over 50% of startup employees report feeling bullied, harassed, or discriminated against by their managers. On the diversity front,
employees note growing barriers to promotions and leadership roles for people of color and women, highlighting significant challenges
in workplace inclusion and advancement.

Have you ever felt bullied, harassed or discriminated against by your manager?
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

217
 SECTION - TALENT

Startup Talent / Repeat Founders and Unicorns

Is prior startup experience essential to build a unicorn? Not necessarily—60% of unicorn founders were first-time entrepreneurs!
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

218
 SECTION - TALENT

Startup Talent / Employee Equity

Base salary increases quite linearly, while stock based compensation rises exponentially.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

219
 SECTION - TALENT

Startup Talent / Employee Equity - UK

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

220
 SECTION - TALENT

Startup Talent / The Indian Unicorn Founder is Increasingly Homegrown

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

221
 SECTION - TALENT

Startup Talent / Nuggets Not to be Missed

How to set up a cofounder prenup

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

222
 SECTION - TALENT

Venture Talent / Junior VC Talent

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

223
 SECTION - TALENT

VC Talent / Churn

VC talent churn persists and is expected to continue well into 2025.

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

224
 SECTION - TALENT

VC Talent / Transitions
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

225
 SECTION - TALENT

VC Talent / Learning About VC

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

226
SECTION

LIMITED PARTNERS

IMAGE FROM ADOBE FIREFLY

Prompt given - “Global VC fundraising in 2024 may match last year’s
volume, but the number of funds has halved. This shifting landscape
underscores the dominance of well-established players and the challenges
for new entrants in today’s venture market.”

227
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Index

Venture Capital Fundraising Corporate Venture Capital

• Global VC Fundraising Data • Global CVC Data

• U.S. VC Fundraising Data • U.S. CVC Data
• U.S. vs Europe • CVC Units Getting into Action
• Experienced firms winning the fundraising game
• Larger Funds Winning the Fundraising Game Other LP nuggets
• First-time Funds Dwindle
• Global Megafund VC fundraising • Goverment LPs Playing Their Part
• U.S. Megafund VC fundraising • Family Office - Growth in India
• U.S. VC Dry powder continues to grow • Family Office - The Indian Context
• Europe VC Fundraising
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• Europe VC Fundraising by Region

• Europe VC Fundraising by Type of Investor
• UK VC Dry Powder
• Getting More Private Capital into VC Asset Class
• VC Firms Returning Capital or Reducing Fund Size
• Nuggest Not to be Missed
• LP Advice

228
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Summary

Venture Capital Fundraising compress in 2024. Experienced investors are dominating, capturing nearly
65% of Europe’s VC capital—their highest share in over a decade. In the UK,
Global VC fundraising fundraising is on track for a record $12.2 billion in 2024, with $9 billion
Global VC fundraising may match 2023 levels, but the number of funds already announced, rapidly expanding its dry powder reserves.
raised has plummeted—from 2,000 to under 1,000 by Q3. A few large funds
dominate the landscape, while smaller funds feel the squeeze. This dynamic Experienced firms Winning the Fundraising Game
is unfolding worldwide, underscoring the challenges lesser-known players The data is striking: experienced VC firms have raised 81% of capital versus
face in today’s market. 29% for emerging ones over the past decade. Yet, in 2024, the number of
experienced and emerging firms raising capital has equalized, closing a
U.S. VC fundraising long-standing gap.
U.S. venture fundraising value is set to surpass 2023 and pre-pandemic
levels, but fund count is expected to hit a decade low, concentrating capital Larger Funds are Winning the Fundraising Game
among large, well-known managers. LPs are increasingly favoring Experienced and large VC funds are dominating the fundraising landscape.
established firms, with billion-dollar funds now making up 34% of total funds Not only are more big funds raising capital, but they’re also securing much
raised—nearly double last year’s share. The VC landscape has been larger amounts, widening the gap with smaller players. In The U.S., LPs are
challenging; in 2022 and 2023, nearly 50% of funds fell short of their increasingly backing large, established firms, with billion-dollar funds now
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

fundraising targets, underscoring the growing dominance of big-name comprising 34% of all capital raised—almost double last year’s share,
players. underscoring the dominance of big-name players.

Europe VC fundraising First-time fund dwindle

European VC fundraising reached €17.6 billion across 126 funds, up 4.8% First-time funds are struggling—closing just a quarter as many as in 2021,
YoY, driven by larger fund sizes with a median of €143.1 million by Q3. The with monthly totals now at a seven-year low.
UK and Ireland stand out, steadily increasing fundraising volume, while fund
count remains stable. Meanwhile, other regions have seen VC fundraising

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Dry powder continues to stay high

Dry powder has reached record levels as deployment slows, with funds
raised in 2021 or earlier sitting unused. Active investors are focused on
early-stage companies, but deploying large funds through seed investments
is slow, insulating the seed stage but barely denting the dry powder
reserves.

Getting more private capital into venture asset class

European institutional investors, especially pension funds, are under-
allocated in venture capital, challenging VC managers who rely heavily on
international capital. This dependence limits the local startup ecosystem,
stifling growth for Europe’s innovative companies.

Corporate Venture Capital

CVC units are deepening their involvement in the startup ecosystem,

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

especially in AI-focused ventures, as corporate rounds increasingly reveal a

strategic investment approach. While motivations vary, companies are
backing startups primarily for strategic, not just financial, gains, with AI
driving much of 2024’s activity. Crunchbase data shows that overall CVC
deal count is down, with early-stage (Series A and B) deals dropping to 489
from over 700 last year, and later-stage (Series C+) deals declining to 190
from 270 in 2022.

230
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VC Fundraising Data / Global

Global VC fundraising for the full year may match or even approach 2023 levels, but what’s truly striking is the sharp decline in the number
of funds raised—from 2,000 to fewer than 1,000 by Q3. A select few funds are dominating the fundraising landscape, making significant
strides while many others struggle.

Global venture fundraising

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of chart = Global. Graph from KPMG report. Click for source post. 231
 SECTION - LIMITED PARTNERS

VC Fundraising Data / Global

Continuing the trend from the previous slide, while fundraising volume stays on par with last year, the significant drop in the number of
funds being raised means that smaller funds are feeling the pinch. This dynamic is playing out on a global scale, highlighting the challenges
faced by lesser-known players in the market.

Global venture fundraising (#) by size Global first-time vs. follow-on venture funds (#)
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Both graphs from KPMG report. Click for source post. 232
 SECTION - LIMITED PARTNERS

VC Fundraising Data / U.S. vs Europe

For the U.S., annualized venture fundraising value is on track to exceed 2023 and pre-pandemic levels. Fund count, on the other hand, is
projected to land at the lowest level in nearly a decade, surfacing capital concentration in select, large scale managers with a name brand.
European VC fundraising reached €17.6 billion across 126 funds, up 4.8% YoY, driven by larger fund sizes, with the median at €143.1
million by Q3, though longer closing times have slowed fund count growth.

US VC fundraising activity Europe VC fundraising activity

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Big Book analysis. Geographic focus of both charts = U.S. Data of both graphs from PitchBook. Click for source post. 233
 SECTION - LIMITED PARTNERS

VC Fundraising Data / Experienced Firms Winning the Fundraising Game

The data below is truly eye-popping. In the past decade, we’ve never seen such a stark contrast between capital raised by experienced VC
firms and emerging ones—81% vs. 29%. Yet, in 2024, the number of experienced and emerging VC firms raising capital is now equal,
closing the gap that had persisted for the last 10 years.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Big Book analysis. Data from PitchBook. 234

 SECTION - LIMITED PARTNERS

VC Fundraising Data / Larger Funds are Winning the Fundraising Game

Experienced VC funds aren’t the only ones dominating the fundraising landscape—larger funds are outpacing smaller ones too. Not only are
there more big funds raising capital than ever before, but they’re also securing significantly larger amounts, widening the gap between them
and their smaller counterparts.

US VC fund count by size bucket US VC capital raised ($B) by size bucket

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Big Book analysis. Data from PitchBook. 235

 SECTION - LIMITED PARTNERS

VC Fundraising Data / First-time Funds Dwindle

First-time funds are facing a challenging landscape. In 2021, 47 new funds were closing each month, but that pace has plummeted to just a
quarter of that rate this year, marking the lowest level in seven years.

First time U.S. VC funds raised per month First-time vs. follow-on funds ($B) in the US
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. 1st graph form SVB report and 2nd graph from PitchBook. Click for source post. 236
 SECTION - LIMITED PARTNERS

VC Fundraising Data / Fewer Funds Reaching Their Targets

2022 and 2023 hasn’t been generous with the VC funds and almost 50% of them had to close under target of their fundraising goals.

VC funds final close amount compared to initial target

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graph form SVB report. Click for source post. 237

 SECTION - LIMITED PARTNERS

VC Fundraising Data / Megafunds

Monthly global megafund capital raised (USD Billion) by type

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Big Book analysis. Data from PitchBook. 238

 SECTION - LIMITED PARTNERS

VC Fundraising Data / U.S. Mega Funds

LPs allocating to venture are increasingly favoring large, well-established firms. Billion-dollar funds now make up 34% of all funds raised
this year—nearly double their share from last year, highlighting the growing dominance of big-name players in the market.

U.S. VC funds that raised over USD 1 billion

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from SVB report. Click for source post. 239
 SECTION - LIMITED PARTNERS

VC Fundraising Data / U.S. VC Dry Powder Continues to Grow

Dry powder continue to build to it’s highest levels. Dry powder raised in 2021 or earlier continues to get deployed slowly as VCs hold off.
Most active investors are focused on earlier-stage companies, but deploying a $100+ million fund through seed investments is a slow
process. This dynamic has kept the seed stage well-insulated, but it hasn’t made much of a dent in the dry powder stockpile.

VC dry powder ($B) U.S. VC dry powder

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. 1st graph from PitchBook and 2nd from SVB report. Click for source post. 240
 SECTION - LIMITED PARTNERS

VC Fundraising Data / Europe Fundraising

With increased LP liquidity, European VC fundraising hit €17.6 billion across 126 funds, set to be 4.8% higher YoY. Larger fund sizes, with
the median rising to €143.1 million by Q3, drive this growth, though longer closing times are slowing the total fund count.

Europe VC fundraising activity

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = Europe. Data from PitchBook. 241

 SECTION - LIMITED PARTNERS

VC Fundraising Data / Europe Fundraising by Region

The UK and Ireland are punching above their weight, showing a steady rise in VC fundraising dollar volume. Interestingly, while dollar
amounts have grown, the number of funds has remained nearly unchanged over the past five years. All other geographies show compressed
VC fundraising in 2024.

Europe VC fund count as a share of annual total by region Europe VC capital raised as a share of annual total by region
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = Europe. Data from PitchBook. 242

 SECTION - LIMITED PARTNERS

VC Fundraising Data / Europe Fundraising by Type of Investor

The charts below reveal a standout trend: experienced investors are securing nearly 65% of Europe’s VC fundraising capital—the highest
share in over a decade.

Share of Europe VC fund count by emerging versus experienced firm Europe VC capital raised as a share of annual total by region
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

*Emerging firms are defined as firms that have launched fewer than four funds.
**Experienced firms are defined as firms that have opened four or more funds.

Geographic focus of the chart = Europe. Data from PitchBook. 243

 SECTION - LIMITED PARTNERS

VC Fundraising Data / UK - Fundraising

The UK is set to hit a record $12.2B in new VC funds raised in 2024, significantly boosting its dry powder reserves. With $9B already
announced this year, the funding pool is rapidly expanding.

UK new VC funds raised

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = UK. Data from Dealroom. 244

 SECTION - LIMITED PARTNERS

VC Fundraising / Europe - Getting More Private Capital into VC Asset Class

European institutional investors, particularly pension funds, are increasingly under-allocated to private market asset classes like venture
capital. This poses a challenge for VC fund managers, who struggle to raise sufficient capital from domestic LPs. As a result, there’s an over-
reliance on international money, creating a gap in the local startup ecosystem that stifles the growth of innovative companies in Europe.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

245
 SECTION - LIMITED PARTNERS

VC Fundraising / VC Firms Returning Money or Reducing Fund Size

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

246
 SECTION - LIMITED PARTNERS

VC Fundraising / Nuggets Not to Be Missed - 1

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

247
 SECTION - LIMITED PARTNERS

VC Fundraising / Nuggets Not to Be Missed - 2

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

248
 SECTION - LIMITED PARTNERS

VC Fundraising / LP Advice
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

249
 SECTION - LIMITED PARTNERS

CVC Data

Corporate rounds reveal that startup investment is increasingly strategic. While motivations vary, companies typically back startups for
strategic gains rather than purely financial returns. This approach explains the resilience of corporate rounds, even in a slow exit
environment, as they boost brand value without requiring immediate exits.

Corporate VC participation in global venture deals Corporate VC participation in European venture deals
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = Global. Graphs from PitchBook. Click for source post. 250
 SECTION - LIMITED PARTNERS

CVC Data / U.S. - 1

Corporate rounds reveal that startup investment is increasingly strategic. While motivations vary, companies typically back startups for
strategic gains rather than purely financial returns. And one of the biggest factor for 2024 is AI investments.

Corporate Rounds For US Private Companies, Seed Through Growth Stage Corporate participation in venture deals in the US
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. 1st graph from Crunchbase and 2nd from PitchBook. Click for source post. 251
 SECTION - LIMITED PARTNERS

CVC Data / U.S. - 2

SVB data shows CVC-backed venture investment is on track to hit $184B in 2024, up from last year, while deal volume is projected to dip
slightly to just over 8,500. Despite this decline, early-stage deals are thriving, making up 86% of CVC activity as they focus more on pre-seed
and early-stage investments to foster closer ties with emerging companies. Nearly 30% of CVC deals this year have centered on AI, outpacing
general VC activity in this sector as CVCs deepen their commitment to tech-driven ventures.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. Graphs from SVB report. Click for source post. 252
 SECTION - LIMITED PARTNERS

CVC Data / U.S. - 3

Crunchbase data reveals a notable trend: not only has the total number of corporate venture capital (CVC) deals dropped, but participation
across stages is also down. For early-stage rounds (Series A and B), CVCs have engaged in just 489 deals compared to over 700 last year. A
similar pattern appears in later-stage rounds (Series C+), with only 190 deals completed by mid-September versus 270 in 2022.

Total Rounds Participated In By US Corporate Or CVC Firms Total Rounds Led Or Co-Led By US Corporate Or CVC Firms
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Includes all rounds, from angle and seed to early-stage and late-stage rounds. Includes all rounds, from angle and seed to early-stage and late-stage rounds.

Graphs from Crunchbase. Click for source post. 253

 SECTION - LIMITED PARTNERS

CVC / CVC Units Getting into Investing Action

CVC units are continuously increasing their exposure to startup ecosystem and especially to AI focused startups.

Rounds Led Or Co-Led By US Corporate Or CVC Firms Notable CVC funds raised in 2024
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Graph from Crunchbase. 254

 SECTION - STARTUP FUNDRAISING | DATA

LPs / Government-based LPs Playing Their Part

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

255
 SECTION - STARTUP FUNDRAISING | DATA

Family Offices / Growth in India

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

256
 SECTION - TALENT

Family Office / The Indian Context

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

257
SECTION

VENTURE BUSINESS

IMAGE FROM ADOBE FIREFLY

Prompt given - “Big vs. Small VC Funds”

258
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Index

Venture performance • KPIs to Collect from Startups

• Distributions • Advice for GPs on Portfolio Construction
• DPI Data • Optionality in Venture Funds
• DPI and Performance Timing • Chief Legal Offciers and Rise of IR Personnel
• VC vs Other Asset Classes
Venture Business
• Smoothed Return Differ
• Optimistic Future Expectations in Europe
• Venture Returns Muted, but so was Private Equity
• Venture Fund Management Fees Explained
• Startup Failure Same Among Top and Average Fund
• Zombie VCs - Exisiting but Limited Investing
• Correlations, Returns, and Yeilds
• Trends in VC Business
• Big vs. Small Funds
• Illiquidity is a Feature
• What to Expect in the Next 3-5 Years
• What Venture is Becoming
• Peformance benchmarking U.S. vs Europe
• Case for Solo GPs
• Peformance Benchmarking Europe
• Partner Only Funds
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

• IRR discussions
• Angel Investing Isn't the Same
• Performance Difference is Staggering
• Building Brands
• Seed Fund Evaluation and Luck Driving Returns
• Fund Structuring and Oversight
• Nuggets not to be Missed
• U.S. Continues to Pull
Venture Fund Management • VC Fundraising Story
• Prun to cultivate the winners • Nuggets not to be Missed
• Reserves and Recycling

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Venture Performance / Distributions

Distribution rates have slowed.

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = Global. Data from MSCI. Click for source post. 260
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Venture Performance / DPI data

Although the time to reach 1X DPI shows a decreasing trend, it still is in the range of 7.5-9.5 years depending upon whether the fund is
top quartile or median.

Number of years taken to reach 1.0x DPI for historical vintages

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Graph from AXA Ventures. Click for source post. 261

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Venture Performance / DPI & Performance Timing

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Venture Performance / VC vs Other Asset Classes

According to MSCI, venture capital has outperformed buyout since 2019.

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = Global. Data from MSCI. Click for source post. 263
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Venture Performance / VC vs Other Asset Classes

Desmoothed returns are considerably lower for VC than for other asset classes.

PitchBook Private Capital Indexes

Reported Desmoothed
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Data from PitchBook. Click for source post. 264

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Venture Performance / Venture Returns Muted, But So Was Private Equity

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Geographic focus of the chart = Global. Data from MSCI. Click for source post. 265
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Venture Performance / Startup Failure Almost Same Among Top and Average Fund

The standout insight here is that loss ratios (sub-1x deals) are nearly identical between top quartile funds and all venture funds group. What
truly matters is the percentage of capital placed in top-performing “far-right” wins. Even the top 5% of funds miss their targets on about 75%
of deals. A great fund is defined by consistently landing more big winners.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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Venture Performance / VC Correlations, Returns, and Yields

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Chart from JP Morgan. Click for source post. 267

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Venture Performance / Big funds vs. Small funds - 1

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Venture Performance / Big funds vs. Small funds - 2

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Venture Performance / Big funds vs. Small funds - 3

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Venture Performance / What to Expect in the Next 3-5 Years ?

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Venture Performance / Performance Benchmarking - U.S. vs Europe

Over longer timeframes, U.S. vehicles outperform, especially over five years. This is largely due to the market's size, maturity, and robust exit
opportunities. Since IRR is cash flow-based, faster exits mean quicker payoffs, driving up returns and giving the U.S. a clear advantage.

Snippet from the article

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Graph from PitchBook. Click for source post. 272

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Venture Performance / Performance Benchmarking in Europe

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Venture Performance / IRR Discussions

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Venture Performance / The Performance Difference is Staggering

Moving from the top quartile to the top 5% yields a powerful 48-point IRR boost. In this market, being the best has never mattered more.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Chart from Equal Ventures. Click for source post. 275

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Venture Performance / Seed Fund Evaluation and Luck Driving Returns

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 SECTION - STARTUP FUNDRAISING | DATA

Venture Performance / Nuggets Not to be Missed

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Venture Fund Management / Prun to Cultivate the Winners

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Venture Fund Management / Reserves and Liquidity

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of both charts = U.S. Data from PitchBook, as of September 30, 2024. 279
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Venture Fund Management / KPIs to Collect From Startups

As expected, revenue (not just ARR) is the most frequently requested metric across stages. Net burn rate, FT headcount, and gross margin
are also common requests across all stages.

Top 10 most requested metrics by series

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Chart from Aumni. Click graph for source post. 280

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Venture Fund Management / Advice for GPs on Startup Portfolio Construction

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Venture Fund Management / Optionality in Venture Funds

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Venture Fund Management / Chief Legal Officers and Rise of Investor Relations Personnel
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Venture Business / Optimistic Future Expectations in Europe

Optimism is practically in a VC’s job description! While current business perceptions remain steady year-over-year, expectations are
increasingly upbeat. Despite portfolios underperforming, VCs remain optimistic about the future.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Charts from EIF report. Click for source post. 284

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Venture Business / Venture Fund Management Fees Explained

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Click graph for source post. 285

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Venture Business / Zombie VCs - Existing But Limited Investing - 1

Just 24% of active VCs have made just one investment since 2023, potentially marking them as “zombie VCs” unlikely to raise again. For
founders seeking long-term partners, these funds may not be ideal for future growth—yet they’re hard to spot.

U.S. VC funds that invested in the last six months: Indexed to 100 at peak
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from SVB report. Click for source post. 286
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Venture Business / Zombie VCs - Existing But Limited Investing - 2

A striking 25% of VC investors active last year have paused new investments, marking the start of a significant consolidation in the venture
market. The number of unique investors has hit its lowest point in a decade. "Zombie funds"—firms unable to raise from LPs or invest in new
startups—aren't going bankrupt like the companies they once backed. Instead, they quietly linger, managing their existing portfolios and
collecting management fees, often operating for years in this zombie state.

The number of unique investors in US startups has fallen precipitously

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Geographic focus of the chart = U.S. Graph from PitchBook. Click for source post. 287
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Venture Business / Trends in VC

Are Emerging Managers DOA VC as a Backend Systematic investing in ventur

THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

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Venture Business / Illiquidity is a Feature

Snippets from the article

One could go so far as to argue that the whole framing of the VC

industry is now based on the power law. The power law’s perceived
uniqueness to venture capital is projected onto allocators. VCs hold an
idealized view of the industry as a “special” institutional asset class
where a small number of winners drive all returns.

Yet we will show here how Pareto distributions (cleverly rebranded as

the “power law”) are not unique to VC in institutional financial markets.
THE BIG BOOK OF VENTURE CAPITAL - Q3 2024

Yet it is only when you view the asset class through the prism of
illiquidity, and not power law returns, that one could argue for VC
having a special place in institutional allocators’ portfolios. It is
precisely because VC is illiquid (and not despite the illiquidity) that VC
is attractive.

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Venture Business / What Venture is Becoming?

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Venture Business / Solo GPs

The U.S. market is far more welcoming to solo GPs than Europe, where cultural and ideological barriers make it tougher for solo managers
to succeed.
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Graph from LTV Capital report. Click for source post. 291
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Venture Business / Partner-Only Funds

Benchmark is raising $170 million, primarily from its own partners, with limited access for friends and family. This partners-only fund has
been a core strategy from the start, though a fund funded almost exclusively by partner capital is rare.
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Venture Business / Angel Investing Isn’t the Same

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Venture Business / Building Brand

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Venture Business / Fund Structuring and Oversight

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Venture Business / Nuggets Not To Be Missed

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Venture Business / U.S. Continues to Pull

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Venture Business / VC Fundraising Story

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Venture Business / Globalized Capital

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THANKS!

Rohit Yadav
(Author - The Big Book of VC)

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