Viktoriya Tigipko is one of the most recognized names in the Eastern European VC community and is a native of Ukraine.
She runs TA Ventures, a pre-seed and seed stage VC, since 2010. Additionally she founded iClub (an angel network), WTech (a community for women in tech), and is Chair of the Board at the Ukrainian Startup Fund.
Guest Author: Viktoriya Tigipko
2024 has been a pivotal year for startups and venture capital (VC) across the globe.
With economic challenges from inflationary pressures, geopolitical tensions, and a cooling post-pandemic economy, founders have faced a unique set of obstacles.
Investors have also become more selective, shifting focus away from the speculative high-growth-at-all-costs model of the past to a more sustainable and grounded approach to scaling businesses.
The era of “fake it till you make it” seems to be on the decline.
Investors are demanding more transparency and accountability, pushing for startups to focus on real unit economics and sustainable growth.
Let’s talk today about what we saw in venture in 2024 and what we are likely to see going forward.
The Global VC Landscape in 2024
In North America, the venture ecosystem remained strong but more tempered compared to the explosive growth we saw in the last decade.
The tech-heavy markets, particularly in the United States, saw a return to fundamentals. Startups that relied on inflated valuations without substantial revenue streams began to crumble under the weight of unrealistic growth expectations.
In Europe, founders found themselves navigating not only economic headwinds but also regulatory challenges. However, Europe’s strong focus on sustainability and innovation in areas like climate tech, AI, and health tech set it apart as a unique destination for investors looking for long-term value.
European startups showed resilience by embracing real unit economics from the get-go, focusing on profitability sooner than their North American counterparts.
In Asia, the startup scene was a mixed bag. China continued to feel the pressure from economic slowdowns and regulatory crackdowns, while Southeast Asia, particularly Indonesia, saw a surge in startup activity, fueled by a growing middle class and increasing digital adoption.
Fintech and e-commerce remained strong sectors, with a clear shift toward profitability and reducing cash burn.
In Latin America, startups were focused on expanding access to financial services, especially for underserved populations. The region continued to present massive opportunities, but investors demanded clearer pathways to profitability rather than just growth metrics.
A Shift Toward Sustainability in 2024
This year, the recurring theme in the startup ecosystem across all regions was sustainability—not just in the environmental sense, but also in financial sustainability.
Investors have grown tired of funding businesses with nebulous paths to profitability. Instead, the focus has shifted to businesses that can prove that they are building real value with the potential for long-term survival.
Sustainability Trend 1: Unit Economics Over Vanity Metrics
Gone are the days when startups could get away with showcasing vanity metrics like user acquisition numbers or total app downloads without regard to whether those users were bringing in revenue.
In 2024, unit economics became the gold standard. Founders needed to demonstrate that they had a clear understanding of how much it cost to acquire a customer and, more importantly, how much revenue each customer generated over time.
Sustainability Trend 2: Capital Efficiency and Sustainable Growth
Over the past few years, the VC world was characterized by cash-burning companies that prioritized growth at any cost. 2024 shifted away from that mentality.
Startups were no longer rewarded for spending millions on marketing and hiring just to boost their valuations. Instead, capital efficiency became a key driver of investment decisions.
Sustainable growth—defined as growth driven by real demand and a well-functioning business model—was paramount.
Sustainability Trend 3:Product-Market Fit and Scalability
Startups focused more intently on achieving and maintaining product-market fit before attempting to scale. It’s no longer enough to show that there’s an initial burst of interest in a product or service.
Founders were under pressure to demonstrate that their product had staying power, that it solved a real problem, and that customers would continue using it over time.
Investors Wanted No Bullshit Metrics
In 2024, investors became laser-focused on metrics that genuinely reflected the health of a business.
The days of impressive-sounding but ultimately meaningless statistics are over. VCs now prioritize transparency and accountability, relying on key performance indicators (KPIs) that give an honest view of the company’s performance.
Metric 1: Revenue Growth and Profitability
For many investors, revenue growth is important, but profitability is paramount. Startups that chased explosive growth without a clear pathway to profits found themselves cut off from funding.
Instead, founders were expected to provide realistic projections, showing how their revenue would eventually outpace their costs.
Metric 2:Burn Rate and Runway
Another key metric this year was burn rate—the rate at which a startup is spending its capital. Investors scrutinized startups’ cash burn more intensely than in previous years, requiring founders to show how long they could operate before needing additional funding (runway).
A burn rate that was too high without corresponding revenue growth became a red flag, while a healthy runway became a sign of prudent management.
Metric 3: Gross Margins
Gross margin (revenue – cost of goods sold) became an essential indicator of a startup’s potential for profitability. Startups with solid gross margins demonstrated that they had pricing power and an efficient supply chain, two elements crucial for long-term survival.
2024 and Beyond: What the Future Holds for VC and Startups
As we move into 2025 and beyond, the lessons of 2024 will continue to shape how startups are built and funded.
Investors are increasingly cautious, and the bar for securing capital has risen. However, this is not a negative development. In fact, the pivot to real, sustainable growth is a healthy correction that the venture capital industry desperately needed.
Startups that focus on solid fundamentals, prioritize transparency, and demonstrate a clear path to profitability will thrive.
The shift toward sustainable, no-nonsense growth will create stronger, more resilient companies capable of weathering future challenges.
For investors, 2024 has underscored the importance of being more selective and ensuring that their capital is going into businesses that have the potential to create lasting value.
In a world where hype is no longer enough, the future of venture capital lies in startups that focus on building real businesses—businesses that can stand the test of time.
Do you want to work with us?
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This is our angel network that consists of 1,000+ angels in 40+ countries and growing. iClub is backed by TA Ventures and is a great place to start for first time angel investors.
There is a simple form to fill out on the site and after being qualified you will have access to our exclusive deal flow.
If you’re interested in TA Ventures than you can see our team here and you can reach out to the person that you feel is most appropriate to your inquiry: https://taventures.vc/team/.
