It has been a tumultuous time for startups in search of an exit strategy, but as the saying goes, all good things must come to an end. With the exit market remaining closed in 2023, despite optimistic hopes following a quiet 2022, both investors and founders alike are banking on 2024 to be the year that the market finally thaws out. But now that 2024 is upon us, one has to wonder, do they still hold onto that belief?
To get a better understanding of what’s to come, TechCrunch+ recently conducted a survey with over 40 investors, asking for their predictions on various topics heading into 2024. One of the topics explored was the state of the exit market, and the results were promising. The majority of investors indicated that 2024 will surpass both 2023 and 2022 in terms of exit volume, but there was no consensus on what types of exits we can expect to see.
Some investors are feeling more bullish about M&A activity in 2024, while others believe we will see a rebound in the IPO market. Though, it’s worth noting that most responses were received before the dissolving of the Adobe-Figma deal, and many VCs recognized that startups looking to go public this year will need to navigate the current regulatory environment carefully.
M&A
“I believe this year will see an uptick in M&A activity,” said Don Butler, managing director of Thomvest Ventures. “The focus on solid business fundamentals and economics in the startup sector in recent years has led to a number of companies finding success in demonstrating strong growth alongside healthy financials.”
