The venture capital landscape in Q3 2024 has showcased a return to more subdued levels, following a brief resurgence in activity during Q2. This trend is not unexpected given the broader cautious investment climate over the past couple of years. As a fractional CFO, it's clear that the market's stabilization at lower levels compared to the frenzied peaks of 2021 and 2022 marks a shift towards a more disciplined and selective approach to investing. In terms of funding, the $37.9 billion invested during Q3 signals this "new normal" of VC activity. While this figure is a significant drop from the record highs witnessed just two years ago, it remains consistent with recent quarters. This stability suggests that investors are recalibrating their strategies, favoring prudent investments rather than pursuing sheer volume. Interestingly, the number of deals closed, amounting to 3,777, continues to reflect a trend towards fewer but potentially more impactful investments. This shift underscores the necessity for startups to present not only compelling pitches but also robust business fundamentals to capture attention and secure funding. Sector-wise, artificial intelligence remains a primary focus for venture capitalists. The sustained interest in AI underscores its transformative potential across industries, indicating that investors are still drawn to its long-term prospects. For startups operating in this space, it's a reminder of the competitive landscape and the importance of differentiation. As the venture capital ecosystem continues to evolve, understanding these dynamics is crucial for both startups and investors. Startups must sharpen their value propositions and ensure strong business fundamentals, while investors are likely to prioritize strategic, well-grounded opportunities. This environment offers an opportunity for those who can adapt and align their strategies with this emerging "new normal." source : https://www.sfexaminer.com/news/technology/venture-capital-funding-plunges-31-percent-to-2024-low-in-q3/article_b799a6c4-811c-11ef-84fd-5bf641b8f232.html