Pre-Seed Boom. Now that our annual Pre-Seed report is available to everyone, it's time to dive into the 2024 trends. We asked 40 leading #VC funds and 50 top angel investors in Israel how many Pre-Seed investments they made in 2024 - here’s what we found. The insights highlight a clear trend: Pre-Seed investments gained momentum in 2024, both among funds and, even more significantly, among angels. ??What does the data reveal? Over the past year, we have observed growth in the number of Pre-Seed investments among VC funds and angel investors. More funds have made more investments, and in fact, we found that the median number of investments increased by 50%, reaching four investments in 2024 compared to three in 2023. Additionally, while the average number of deals per fund in 2023 was just above 2, in 2024, the average increased to 4 deals (or 4.15, if we want to be precise) - almost double last year’s figure. We saw a significant number of funds doubling their investment volume, from 2-3 investments in 2023 to 4-5 deals in 2024. However, an opposite trend was also observed - three funds reported making no Pre-Seed investments this year, and seven additional funds made only one investment, allocating a significant portion of their capital to Seed-stage investments instead. ??What about angels? In contrast, we see a significant increase in the number of Pre-Seed investments made by angels. While in 2023, only 8% of angels made more than five investments, this year, that figure jumped to nearly a third (32%). Moreover, the number of angels who made more than eight investments in a year more than doubled, rising from 4% last year to 10% this year. ??What’s driving these trends? In our view, there are three main reasons: 1??An overall increase in investments - A moderate rise in market stability (economic, security, and political), mainly due to Israel’s significant achievements in Operation Swords of Iron across multiple fronts and progress towards its resolution. 2??Increased angel investments - The #AI industry's dominant influence has significantly lowered technological barriers. Today, almost any team can "work from a garage" and reach a first product with minimal funding, typically ranging from tens to a few hundred thousand dollars. 3??Limited VC activity in the Pre-Seed market - A growing number of serial entrepreneurs have entered fundraising rounds, likely due to the expiration of their lock-in periods at companies that acquired their startups during the 2021 boom. Many of these serial founders are now raising significant Seed rounds, often in the high single-digit or even double-digit million-dollar range, leading funds to reallocate capital toward these later-stage investments. Haven’t read the full report yet? Download it from the link in the comments below.
Nice!
Very interesting, thanks!
https://bit.ly/Pre-seed-report-2024