Venture Forwards: Invest or Miss Out

Salaam, it’s Uzair from Cur8 Capital, I lead our venture capital investing. I’m starting this series, Venture Forwards, to share some of our insights on the venture landscape and the various sectors we’re exploring. To sum it up, a platform shift is underway, and you do not want to sit this one out. Great companies are founded in these choppy times, but most people don’t invest in them – I’m here to convince you otherwise. 

The primary reason for the delayed onset of shutdowns was that a lot of cash was accumulated by big startups, giving them enough funds to last well into 2023. It’s only now that they’ve run out of cash. Per carta, c.1.5k companies died in 2023, which is the largest death toll for startups since the dot-com crash.

Moreover, we started investing out of our EIS fund late in 2022 only, another reason why we have been relatively insulated from the reckoning. That said, a healthy venture market, especially later stage venture, means more follow-on opportunities for the companies we’ve funded, thus we are keeping a close eye on the space.

We expect startups to continue shutting down in 2024, but are confident that the worst is behind us. We are already noticing signs of the sentiment trending back up. Valuations are now back at 5 and 10 year averages, and publicly listed tech is showing signs of recovery – setting the stage for an exciting 2024. 

We definitely see the IPO markets opening up over 2024, and 2025 – with effects trickling down to venture.

Putting aside the medium-term macro trends, what really excites us the most about 2024 are the big platform shifts underway. Let’s discuss the two we are most looking forward to. 

That said, we’re now seeing AI valuations sobering up a bit. Our thinking is that AI will play out over decades, and not over a couple of months or years. Thus, although the pipeline is bustling with AI ops, we are always on the lookout for an asymmetric risk reward ratio when investing, staying in the game while studying and understanding the space.

Although startups are utilising advancements in artificial intelligence (AI) to challenge established industries and create entirely new markets, existing companies are showcasing extraordinary speed in product development and a willingness to experiment like never before. Microsoft, Amazon, Shopify, Adobe Firefly, and GitHub Co-Pilot etc have all integrated AI into their user experiences at impressive speed. 

Our investment strategy here is to balance long term investments in moonshot technologies (think, tech that sucks carbon out of the sky, emerging lithium-ion battery alternatives) with investments in startups that are utilising proven tech in new ways to address the climate challenge.

What does this mean for you?

We believe this vintage will be the best vintage since the Uber, Airbnb time. At Cur8, we see tons of venture deals every week, and our team can confidently say that the environment is teeming with innovation. 

Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you’re unlikely to be protected if something goes wrong. Take 2 mins to learn more.