[ad_1]
Although it was a weaker year compared to the all-time highs of 2021 and 2022, based on deal flow and total investment, even if it was not distributed equally across all venture-backed companies and at all stages of the company. 2023 was once again a strong year for the US venture community. . High valuations in the low interest rate environment during the pandemic, in contrast to rising interest rates and inflation in 2023, resulted in many venture-backed companies seeking additional capital on terms lower than previously high valuations. It became. Therefore, in addition to distressed exits, many companies facing stalled growth and tightened liquidity are seeking a number of convertible debt rounds and share price reduction rounds, stronger economic conditions and the downside, and investors seeking governance protection. With public markets still depressed, a more aggressive regulatory regime, particularly antitrust enforcement, has created an additional hurdle for takeover targets to achieve an exit. On the other hand, significant government incentives have provided lucrative opportunities to attract investment to companies in certain priority industries. In 2024, recent reductions in start-up valuations are expected to result in more systematic growth, more meaningful oversight and professional corporate governance, and economic balance between founders and investors. But companies that raised at the peak of the pandemic will continue to face tough conditions. A difficult decision. Nevertheless, we remain cautiously optimistic that the outlook for lower interest rates and increased liquidity demand will provide a more favorable environment for private transactions and public market opportunities in 2024. Masu.
To continue reading the full GT advisory, click here.
[ad_2]
Source link
