As the conference season kicks off, VC investors are gearing up for a cautiously optimistic 2024, where the normalization of valuations stands out as a positive trend. However, a growing concern shows over the potential impact of geopolitical conflicts and climate change pressures on this year’s performance. These critical topics are poised to take center stage, shaping discussions during VC panels at the LP/GP ‘0100 Conference Europe,’ scheduled to unfold from April 16th to 18th in Amsterdam.
“I believe we will see a growing stability in the financial markets with relatively predictable interest rates in 2024. However, the dark cloud looming over us is the rising geopolitical tensions in several regions. This tension risks stifling innovation, the exchange of ideas, and cross-border investments. As investors, we need to navigate these challenges with resilience and adaptability”, says John Elvesjö, CEO of The Incredible Machine, a single-family office backing 18 venture GPs.
A similar concern was expressed by France-based VC firm Alven’s Partner, Thomas Cuvelier. “Geopolitics will be the main macro factor impacting the timing of a potential recovery in 2024. This includes the US election results and existing or new conflicts in what is a very volatile global environment”.
“As geopolitical factors increasingly shape the industry landscape, forums like Zero One Hundred Conferences play a pivotal role. Here, decision-makers from investment firms across Europe and the globe convene, fostering fluent relationships and nurturing an environment of continuous innovation,” highlights Pavol Fuchs, CEO of Zero One Hundred Conferences.
Opportunities on the horizon
There are several positive indicators as we enter 2024. “First, the “reckoning” of 2023, with its emphasis on unit economics and sustainable growth, is expected to continue in 2024”, says Courtney Powell Chief Operating Officer, Managing Partner 500 Global. “This shift prioritizes healthy business models over-inflated valuations, creating a more stable environment for long-term investment and exits”. When it comes to opportunities, she highlights some emerging markets. “We’re seeing continued growth in emerging markets, particularly in regions like the Middle East, Africa, and even Southeast Asia. There’s booming potential for alpha generation in these regions with growing populations – especially younger ones – as well as great internet and mobile connectivity. The shift in focus towards these developing startup ecosystems offers new opportunities for investors and entrepreneurs”.
LPs take on VC investing this year
Giuseppe De Filippo, Managing Director at Julius Baer, notes a potential shift in private market dynamics, specifically within VC. “With the period of easy money gone, companies have been forced to pivot from growth to profitability. However, achieving positive cash flow takes patience. GPs had been willing to support their portfolio companies through re-investment during this transition, but the laggards are now being left to perform or perish. I suspect this will translate into broad underperformance among GPs. But more importantly, what we need to think about is whether or not this will have a lasting impact on demand from LPs whose enthusiasm has been integral in driving the industry, and ultimately, innovation forward”.
According to the Investment Principal of family office Dara5, James Heath, 2024 will be the year of the hyper-specialist VC. “Where a conviction is hard to come by, and FOMO isn’t driving investment decisions, specialists who know how to pick in this market will shine”.
Climate change and ESG efforts
“The escalating pace of climate change”, is Carolina de Azevedo, Head of Impact & ESG, Emerald Technology Ventures’ major concern this 2024, this can be overcome by significant technological advancement in renewable energy storage, green hydrogen production, and carbon capture and utilization, expected to happen this year. “These technologies will be key to reducing carbon emissions and building more sustainable infrastructure. Secondly, I see this as a year where we finally get more robust and ambitious policies, due to increased public awareness and the pressure that international cooperation is putting on governments. This should foster a more resilient global response to the challenges posed by climate change”, says.
When it comes to ESG, Silva Deželan, Head of Impact & ESG at Forbion, a robust strategy in the short term, which combines ESG integration in their investment process by strengthening the ESG due diligence process, data collection automation, start using the Life Sciences VC ESG & reporting template which was developed jointly by 13 life sciences focused VC investors in 2023, and implement the new impact and ESG framework in Forbion’s new strategy, which will focus on Bioeconomy. “Our existing venture and growth funds focus on life sciences companies that develop new drugs for rare diseases. The new fund will invest in companies that apply biotechnology to clean and feed the planet”, explains.
The 2nd edition of 0100 Conference Europe will gather over +1000 senior private equity/ venture capital executives, fund investors, fund managers, and industry experts. Hear firsthand from the most influential voices across Europe on April 16th, 17th, and 18th 2024 at Leonardo Royal Hotel Amsterdam, Paul van Vlissingenstraat 24, 1096 BK Amsterdam, Netherlands. For media registration please contact laura@0100conferences.com.
About Zero One Hundred Conferences
Zero One Hundred Conferences is a leading provider of offline and online events for PE & VC players in various regions in Europe with a global outreach. In the last 8 years, we organized 47 events with 1500+ speakers, 6000+ investors, and 11500+ attendees. The locations of these events were Amsterdam, Berlin, Luxembourg, Dublin, Copenhagen, Rome, Vienna, Tallinn, Limassol, Prague and Bratislava.
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