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Our predictions for the Canadian Venture Funding landscape…

TechTO announces its 2024 projections for the Canadian Venture Funding landscape, highlighting several key trends:

1. VCCI Fund Deployment: With the VCCI program's latest round announced in 2023, VCCI funds are set to inject new capital into several VC firms, potentially sparking fresh investments in 2024.

2. Tech Stock Market Outlook: Despite a robust year for large tech firms, the broader tech market's fate hinges on stable interest rates and sustained growth among public tech companies, which could positively impact private company valuations.

3. Normalization of AI Startups: AI's integration into startups is becoming standard, leading to a decrease in the 'AI premium' and a shift towards evaluating these companies on par with other startups.

4. Rise of Non-Software Ventures: Interest is swinging back towards hardware and deep tech companies, fueled by factors like defense technology's growing appeal, notable exits (e.g., Clearpath Robotics), and ongoing climate challenges.

Implications for the Market:

• An expected increase in funding, especially in later-stage deals, though not matching 2021's peak.

• Early-stage valuations are likely to remain stable, pushing companies towards capital efficiency and cautious scaling.

• A broader range of company types receive financial backing.

We'd love to hear your thoughts on these predictions. Agree or disagree? What might we have missed? Stay tuned for our upcoming insights on the tightening employee landscape, and exit predictions.

Let us know your thoughts by responding to this email! Your input is invaluable as we navigate these exciting times.

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