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VC Funding Flat: Deeptech Demands Long Horizon
18 Oct
Summary
- VC funding remains nearly flat due to cautious investors.
- Investors are shifting away from consumer tech and finance.
- Deeptech requires a decade-long investment horizon for exits.
Venture capital investment has remained largely stagnant. This near-flat trend is attributed to a cautious approach by investors whose own funding sources, such as family offices and high-net-worth individuals, are staying on the sidelines due to the current subdued stock market conditions.
A notable shift in investment strategy is also evident. There's a discernible move away from the consumer tech and finance sectors. Instead, venture capital is increasingly being channeled into deeptech companies.
This pivot towards deeptech comes with the understanding that these ventures require a significantly longer investment horizon. Investors anticipate needing as much as a decade before they can see a profitable exit, leading to a more measured and risk-assessed engagement with the deeptech ecosystem.
