Nishant Kumar Singh, the Executive Director at J.P. Morgan Private Bank; Marius Ciocirlan, who serves as the Managing Director at Techstars Seattle; Joe Horsman, an investor in biotech at Madrona; Julie Sandler, the General Partner at Pioneer Square Labs Ventures; Carly Kiser, the Managing Director; and Kellan Carter, the Founding Partner at FUSE, are captured in the image from the left.
For entrepreneurs exploring potential business prospects in 2024, there are numerous factors to consider.
While some companies are in need of funding, the IPO landscape was sluggish last year, with diminishing valuations.
The upcoming elections, political instability, and the uncertain interest rate environment all pose potential impacts this year.
Nevertheless, certain enterprises are making substantial investments in the AI boom, which, depending on the perspective, could be either overhyped or underestimated.
This scenario set the stage for a board discussion hosted by TiE Seattle at Bellevue City Hall on Wednesday. The audience included:
AI
The participants amusingly mocked the hype surrounding AI, with Carter jesting, “We do like the group that must not be named,” yet they clearly recognize its potential. AI startups received nearly $50 billion in global funding in 2023.
Sandler highlighted that tasks that were once incredibly challenging can now be easily accomplished, such as identifying opportunities or gaining insights.
Ciocirlan mentioned that Techstars is on the lookout for companies that have the potential to disrupt industries dominated by established players. He questioned whether today’s platforms and technologies could be leveraged to reimagine entire business models.
Carter emphasized that regardless of the latest tech trend, be it AI, blockchain, classical computing, or others, the core of their investment thesis remains consistent.
“We focus on entrepreneurs who develop products that address their clients’ needs,” he explained.
Macroeconomics
When asked about the potential impact of the 2024 elections and global political conflicts on businesses, the panelists agreed that CEOs should focus on what they can control.
Horsman advised, “Ensure that your business is resilient regardless of external circumstances.”
However, entrepreneurs with ties to countries involved in ongoing conflicts may face challenges in managing their businesses and attracting venture capital. Ciocirlan mentioned that companies from Israel and Ukraine participating in the recent Techstars Seattle cohort had to take breaks or return home.
Regarding liquidity options such as going public or being acquired, Kiser noted the influence of economic conditions, expressing hope for stability, particularly in regions like the Middle East and Europe, which she considers the greatest risk.
Layoffs
Despite the ongoing wave of tech layoffs that began last year and show no signs of abating in 2024, there may be a silver lining for firms.
Ciocirlan pointed out, “There is a pool of talent, especially in the Pacific Northwest, tied up in corporate roles,” which he sees as a significant opportunity.
Horsman recommended scouting for designers at companies whose stock prices have recently declined, humorously mentioning, “Their compensation is heavily equity-based, which may or may not pay off.”
Optimism
Despite the layoffs and the downturn in venture capital, it could be an opportune time for early-stage companies.
“We’re witnessing the formation of various enterprises. It’s a return to normalcy.”
Kiser highlighted that once early-stage startups secure their initial funding round, they need not worry as much about interest rates or broader market forces, unlike later-stage companies seeking exits. She cited examples like Airbnb, Stripe, and Uber, which emerged during the financial crisis, as models of creativity and resilience.
The successful businesses emerging from this period will need to focus on generating actual revenue rather than relying solely on investor funding for growth.
Horsman emphasized, “We’re observing a diverse range of companies being established.” “This signals a return to normalcy.”
Ball Flawless
The participants offered insights into what excites investors in a pitch meeting for those gearing up to raise venture capital this year.
Horsman emphasized his preference for founders who empathize with their customers and startups with unique access to data, particularly when paired with AI. He stressed the importance of understanding and empathizing with the target audience.
Ciocirlan emphasized the importance of the founder’s understanding of the market and customer base, as well as the pace of progress in validating hypotheses.
Another key factor is the founder’s ability to attract top-tier talent.
Carter noted, “We scrutinize your initial, subsequent, and future hires.” “There’s a significant message in having talented individuals follow your leadership because it bodes well for success.”
Especially for early-stage ventures, Sandler emphasized the synergy between the founder and the vision.
She remarked, “You need to feel that this individual is the right person to achieve something unprecedented.”
