Equity VCs are entering 2024 with “healthy paranoia”
Dec 26, 2023
Deepka Rana, Principal at Northzone, dives into the venture capital landscape as we approach 2024. He shares insights on the current state of startups, emphasizing 2023 as a year of adjustment while expressing hope for a warmer economic climate ahead. The conversation touches on AI's evolving role in Europe and highlights the increasing importance of valid business models for startups. Rana’s outlook suggests that next year could bring exciting opportunities and challenges for both investors and entrepreneurs.
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2023 Reset
- 2023 was a year of readjustment for venture capital and startups, not as bad as perceived.
- The market returned to pre-pandemic fundamentals, making building and investing harder.
Two Startup Groups
- Two startup groups emerged in 2023: those struggling with inflated valuations from the boom and newer startups.
- Newer startups, unburdened by legacy valuations, are performing better.
Klarna's Resilience
- Klarna's story exemplifies resilience: despite a down round, they improved economics and grew in the US.
- This demonstrates that down rounds don't define a company's future; strong operations do.