Gunderson Dettmer Releases 2024 Venture Capital Report
Gunderson Dettmer released its 2024 Venture Capital Report, analyzing data collected from thousands of venture financing transactions in which we have represented clients.
The report examines market trends in deal activity, valuation and transaction size and includes spotlight sections on the unique factors affecting AI and life sciences deal-making. Included throughout are insights from Gunderson partners, who have negotiated more venture financings than any other law firm every year for the past decade, according to PitchBook.
Overview
Although weak M&A and IPO markets continue to deprive investors of much-needed liquidity, the total amount invested in venture capital financings in 2024 increased significantly compared to 2023. This jump was driven by enthusiasm for technical innovations in artificial intelligence, which lured investors back into the market after almost two years of hesitancy. Investors eased the focus on pre seed and seed rounds that characterized 2023 and slowly re-entered the market for early-stage venture financings (Series A and B) and later-stage venture and growth financings (Series C, D and E+). However, increases in median valuations and transaction sizes were propped up by AI investments, resulting in a bifurcated market where some companies raised record amounts of money at record valuations and others struggled to find capital.
Contributors:
- Tim Ehrlich, Partner & Chair of Life Sciences Practice, Boston
- Steve Franklin, Founding Partner & Chair of Fund Formation Practice
- David Gammell, Corporate & Securities Partner, Boston
- Mike Irvine, Corporate & Securities Partner, San Francisco
- Melissa Marks, Corporate & Securities Partner, New York
- Ryan Purcell, Corporate & Securities Partner, New York
- Aaron Rubin, Strategic Transactions & Licensing Partner, New York
- Heidi Walas, Corporate & Securities Partner, Silicon Valley