AlphaInsights: State of Venture Capital 2024

Last year, Michael Burry, the legendary fund manager who famously profited from shorting the US housing market in 2008, bet more than $1.6 billion on a Wall Street crash by shorting the S&P 500 and Nasdaq-100. Nothing happened.

This year, Warren Buffett’s cash reserves reached a record $276.9 billion as Berkshire Hathaway trimmed its stock holdings in Apple. Some view it as a routine adjustment, while others speculate that Buffett perceives an overheated, overvalued market.

Everyone talks about a soft landing, but warning signs are flashing and the world seems to be teetering on a delicate balance. Is there something we’re missing? Is there an unseen factor at play?

1. Macro Crossover

2024 has been a year of mixed signals. Wall Street swings between celebrating AI-driven gains and bracing for selloffs sparked by underwhelming job reports and inflation fears. While GDP growth shows resilience, warning signs persist: the inverted yield curve and the Sahm Rule hint at a potential recession and job losses. Optimism and uncertainty remain in a constant tug-of-war.

2. New World Order

Geopolitical tensions are at a post-Cold War high. While we are seeing the most active conflicts since the end of World War 2, over 4 billion people are heading to the polls in 70+ countries. Conflict is reshaping the global economy, fragmenting supply chains, and driving nations to rethink their dependencies. Are we entering a new era of protectionism?

3. Climate Resilience

Where do you live? Will your city still be inhabitable in the next few decades? Climate change is no longer a distant threat—it's here. With 2023 marking the hottest year on record, global temperatures are already nearing the critical 1.5°C threshold. From more frequent power outages and skyrocketing insurance costs to shorter ski seasons and devastating wildfires, climate change is affecting every aspect of our lives.

4. The AI Revolution

Artificial Intelligence is reshaping the world, promising to boost productivity, drive innovation, and fuel economic growth. As AI becomes an integral part of daily life, investors are pouring billions into the technology. But as the frenzy grows, one can’t help but wonder—are we reliving the dot-com era?

As we approach the end of 2024, Alpha Impact 8 Ventures, is thrilled to share our latest insights into the dynamic world of investments with our 2024 Venture Capital Report. This report aims to provide a comprehensive exploration of the shifting finance and venture landscape as the world continues to grapple with uncertainty.

As we dive into what has happened so far in 2024 and the changes we think are poised to create significant shifts in profitability, AlphaInsights aims to provide data-driven analysis that empowers investors and entrepreneurs to make informed decisions that maximize alpha and explore the potential that the over-looked opportunities represent.

Alpha Impact 8 Ventures is disrupting the industry, generating wealth, creating technology, providing access, leveling the play field, reducing systemic barriers, and building a resilient world.

Become part of the our revolution.

Happy reading,

AI8 Ventures’ Research & Investment Team