First look at Q2 2024 venture capital reveals continued struggle for deals | NVCA Pitchbook

by | Jul 3, 2024 | Technology

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The first look at the dealmaking environment for venture capital in the second quarter of 2024 revealed continued struggle, according to Pitchbook and the National Venture Capital Association.

The lead VC analyst Kyle Sanford and lead EMEA private capital analyst Nalin Patel offered their “first look” observations about the Venture Monitor report for Q2 2024.

They noted that on the global level, inflation, interest rates, and macro uncertainty have pulled down VC dealmaking.

“Though deal value has seen an uptick due to several large, outsized deals, the dealmaking environment overall is struggling along,” Sanford and Patel said. “The high number of VC-backed companies globally are under pressure from the lower available capital, and many companies are being forced back into the market to raise further private funds because exits cannot be achieved.”

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Global VC activity by region.

Fundraising figures are particularly slow, pacing the year for the lowest total commitments since 2015. The slowdown is exacerbated by the high rate of recommitments to the strategy that global LPs realized over the past few years, as investors (particularly in 2021 and early 2022) came back raise a new fund at a much quicker pace. Now that distributions have slowed, many limited partners are facing the inability to reup commitments back of their unbalanced portfolios.

Missing from the global venture market is the middle and large-sized merger and acquisition (M&A) deals. Acquisition counts have remained relatively high, though a large majority of the deals have been small.

NVCA reports of venture deal activity by quarter.

The market is fertile ground for tech roll-ups and discount bargains, but larger deals have been balked at due to the need for immediate impact on the acquirers bottom line, which many acquisitions are unable to provide.

Dealmaking in Latin America is on a slow pace for the year, likely leading to the slowest year of dealmaking since 2018. Wariness caused by the high number of …

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GamesBeat is excited to partner with Lil Snack to have customized games just for our audience! We know as gamers ourselves, this is an exciting way to engage through play with the GamesBeat content you have already come to love. Start playing games here. 

The first look at the dealmaking environment for venture capital in the second quarter of 2024 revealed continued struggle, according to Pitchbook and the National Venture Capital Association.

The lead VC analyst Kyle Sanford and lead EMEA private capital analyst Nalin Patel offered their “first look” observations about the Venture Monitor report for Q2 2024.

They noted that on the global level, inflation, interest rates, and macro uncertainty have pulled down VC dealmaking.

“Though deal value has seen an uptick due to several large, outsized deals, the dealmaking environment overall is struggling along,” Sanford and Patel said. “The high number of VC-backed companies globally are under pressure from the lower available capital, and many companies are being forced back into the market to raise further private funds because exits cannot be achieved.”

Lil Snack & GamesBeat

GamesBeat is excited to partner with Lil Snack to have customized games just for our audience! We know as gamers ourselves, this is an exciting way to engage through play with the GamesBeat content you have already come to love. Start playing games now!

Global VC activity by region.

Fundraising figures are particularly slow, pacing the year for the lowest total commitments since 2015. The slowdown is exacerbated by the high rate of recommitments to the strategy that global LPs realized over the past few years, as investors (particularly in 2021 and early 2022) came back raise a new fund at a much quicker pace. Now that distributions have slowed, many limited partners are facing the inability to reup commitments back of their unbalanced portfolios.

Missing from the global venture market is the middle and large-sized merger and acquisition (M&A) deals. Acquisition counts have remained relatively high, though a large majority of the deals have been small.

NVCA reports of venture deal activity by quarter.

The market is fertile ground for tech roll-ups and discount bargains, but larger deals have been balked at due to the need for immediate impact on the acquirers bottom line, which many acquisitions are unable to provide.

Dealmaking in Latin America is on a slow pace for the year, likely leading to the slowest year of dealmaking since 2018. Wariness caused by the high number of …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]

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