Preqin has published its Venture Capital Q4 2024: Preqin Quarterly Update report.
The report highlights that global venture capital deal value was up 61 per cent quarter-on-quarter in Q4 2024, to USD87.4 billion from USD54.2 billion in Q3 2024. Deal volume remained virtually flat over the same period, at 3,982 in Q4 2024 compared to 3,919 in Q3 2024. Information Technology (IT), drove deal making in Q4 2024, with deal value up 118 per cent quarter-on-quarter to USD47bn, reaching a total of 1,883 deals. As lead author of the report, Michael Patterson notes, deals for Artificial Intelligence (AI)-related companies drove IT sector dealmaking.
Key report facts:
Venture capital-backed exits remain modest: In Q4 2024, venture-backed exits reached USD118 billion in aggregate value from 702 exits. This remains below the five-year quarterly average of USD171billion and 1,064.
Fundraising remains soft: Global venture capital fundraising sentiment remained muted in Q4 2024, with USD20.6 billion raised at final close by 207 funds. This compares to USD40.4 billion at final close by 552 funds in Q4 2023. North America-, Europe-, and APAC-focused venture capital all saw falls in fundraising in the Q4 2023 to Q4 2024 comparison. North America-focused venture fell from USD21.3 billion to USD15.7 billion, Europe-focused from USD6.1 billion to USD2.2 billion, and APAC-focused USD12 billion to USD1.7 billion.
Investor sentiment and planned commitments show promise: Preqin’s latest global investor survey shows that 31 per cent of venture capital investors are looking to increase their commitments over the coming 12 months. This is the largest proportion of investors since November 2021, when 41 per cent of venture investors planned to commit more capital in the coming 12 months.
Michael Patterson, Senior Associate, Research Insights at Preqin says: “The attitudes of venture capital investors shifted in the fourth quarter of 2024. Our latest survey of investors from November 2024 shows they have not been this positive about allocating to venture capital since 2021, with almost one-third looking to increase their commitments over the coming year. This, alongside venture capital deal activity in Q4 2024 trending up to a level not seen since the start of 2022, is a positive signal for venture in 2025.”
