Exit hangover: 2024's fundraising dilemma

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The Weekend Pitch

December 31, 2023

The Weekend Pitch is powered by PitchBook’s industry-defining research and best-in-class data

(Drew Sanders/PitchBook News)

Private investment managers may be raising champagne glasses to better days ahead, but poor fund distributions and interest rates are likely to spoil the party.

The downtrodden exit environment has hit PE and VC investors alike with some of the lowest returns in years. Less cash leaving old funds means LPs are strapped for new commitments.

Meanwhile, those LPs are being lured by less risky bets. Higher yields on bonds and cash continue to make it easier to hit institutional investor return targets—typically 7% to 9%—with fewer alternative assets.

This is the Weekend Pitch, and I'm James Thorne. You can reach me at James.Thorne@PitchBook.com or on X @jamescthorne.

Our analysts have a few predictions for what's in store for fundraising in 2024.

Let's dive in.

Trivia

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PitchBook News examined the performance of a dozen tech verticals and found that, from agtech to ecommerce, all hauled in fewer dollars and deals in 2023. Which vertical saw the biggest dive in deal value, falling 77% year-over-year?

A) Ecommerce
B) Defense tech
C) Climate tech
D) Crypto and blockchain

Find your answer at the bottom of The Weekend Pitch!

Ready for 2024? Take an early look with our analysts

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We're a day away from 2024, and our analysts are ahead of the game with a full slate of reports looking at what next year may have in store. They've made their projections and accompanied them with data to let you consider those views and finalize your own.

Read these reports peering into 2024:

Plug into our latest tech research

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From transit tech to space tech, PitchBook's Emerging Tech Research team regularly explores new areas of opportunity for investors. The playing field changes quickly. Let our analysts keep you up to date.

Recent coverage areas include:

Biopharma

AI and machine learning

Generative AI VC trends

Digital health

Foodtech

Insurtech

Quote/Unquote

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"Based on my discussions with bankers, I think it's going to be another quiet year."

—Ran Ben-Tzur, a Fenwick IPO attorney speaking to PitchBook News about the IPO outlook for next year.

Trivia

Answer: A)

The ecommerce vertical saw a 77% decline in deal value year-over-year in 2023. You can read more about the verticals that led and those that took dives this year in our article.

Stay tuned

Keep an eye out for these insights and research reports coming out this week:

Vertical Snapshot: Semiconductors
Q4 2023 PitchBook-NVCA Venture Monitor First Look
December 2023 Global Markets Snapshot
Analyst Note: Vertical Opportunities in a Reopened IPO Window

This edition of The Weekend Pitch was written by James Thorne and Jacob Robbins. It was edited by Ron Prichard.

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Exit hangover: 2024's fundraising dilemma

Trivia

Ready for 2024? Take an early look with our analysts

Plug into our latest tech research

Quote/Unquote

Trivia

Stay tuned

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