Monetization and profitability potential will drive the seed investment decisions in 2024!

As we bid farewell to a transformative year in seed venture capital to 2023, it's important to reflect on the investment landscape that defined the past year and anticipate the trends that will shape the landscape in 2024. In the ever-evolving world of investments, staying ahead of the curve is paramount, and 2023 has left us with some intriguing insights. As we delve into the realms of 2024, the contours of the investment landscape are set to evolve, promising a new wave of opportunities and challenges

GenAI, LLM Ops, Deep-tech, B2B Commerce & Climate-tech Took Center Stage in 2023. Investors were definitely more cautious and conservative this year Vs 2022 and hence less number of investments happened.

Dominance of investments in technology, specifically focusing on GenAi, Deeptech, LLM Ops companies was clearly evident. As industries embraced the transformative power of intelligent technologies, the venture capital community mirrored this enthusiasm. The convergence of technology and artificial intelligence has proven to be a winning formula, capturing the imagination of investors. Startups and companies pioneering advancements in AI applications, machine learning, and automation witnessed a significant infusion of capital.

Furthermore, B2B commerce investments emerged as a major focus in 2023. Quick monetization and low marketing cost leading to predictable profitability and hence investors' confidence. Businesses looking for more curated products with better quality, digital presence with transaction facility,? better delivery service and pricing had led to boom of this category in various sectors.

Looking Ahead to 2024: B2C Commerce, GenAi & Cyber Security.will be primary focus and trending.

?B2C Commerce: As we look ahead to 2024, New B2C Platforms with ultra sharp Target customers(Niche) in various sectors, better shopping experiences, high-quality products and customer service. With increasing per capita income, disposable income and infra in our country, Customers are looking to spend more but need a better quality of products and more reliable service.

GenAI: the momentum in AI investments is expected to continue, albeit with a refined focus. The emphasis will shift from generic AI applications to industry-specific solutions, catering to the unique demands of sectors such as healthcare, finance, and manufacturing. This shift underscores a maturation of the AI ecosystem, where specialized applications will drive the next wave of innovation.

Cyber-security: In the era of the plethora of data, personal information exposure and internet penetration, corporation are at risk of data security breach. Privacy and data security is very critical. Systems and algorithms need to be very robust and protected for cyber security. Multiple companies coming up with right solution as well as insurance products for the same.

Optimization & Computing: As businesses seek to enhance efficiency and reduce operational costs, investments in optimization and computing solutions will witness a significant uptick. Companies offering tools and technologies that streamline processes and maximize productivity are likely to garner substantial investments.

?

Sectors to see a slowdown in 2024: Gaming, D2C and B2B Commerce.

In conclusion, a saner 2023's with a disciplined, cautious and conservative investment landscape inclined towards tech and B2B investments? has set the stage for a scaled-up investment approach in tech & cybersecurity starups with comeback for unique high quality B2C platforms in 2024. Investors, take note – the landscape is evolving, and opportunities abound for those willing to navigate the currents of change.

(The Article appeared in Economic Times dated 26th Dec 2023; https://economictimes.indiatimes.com/small-biz/sme-sector/monetisation-profitability-to-drive-seed-investment-decisions-in-2024/articleshow/106282714.cms)

?