It's 'liquidity, stupid': VCs say tech investing is tough amid IPO lull and 'nuts' AI hype

Published On Nov 14, 2024, 6:12 AM

Venture capitalists at the recent Web Summit highlighted the increasing difficulty in tech investing due to a lack of liquidity from initial public offerings (IPOs) and mergers & acquisitions (M&A). Despite a surge in funding for AI startups such as OpenAI, the overall VC environment is challenging as investors struggle to cash out their long-term investments. Key opportunities outside AI include sectors like cybersecurity, enterprise software, and cryptocurrency, with some firms like G Squared seeing potential in startups like Wiz, which has demonstrated substantial growth and is approaching a significant annual recurring revenue milestone.