The VC swing “from optimism to pessimism”, said Hernán Kazah of Kaszeck

During the recent Endeavor Experience held in Buenos Aires, Hernán Kazah, co-founder of Kaszek Venture Capital, stated that things will improve for startups and investors by 2024.

According to Bloomberg Línea, Kazah explained during a press dialogue that the venture capital climate has changed drastically. He compared it to a pendulum, swinging between extreme optimism and total pessimism about technology and its value.

Kazah believes that for the sector to regain a positive outlook, gradual changes are needed, where some start to become more optimistic or see very low prices.

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He cited MercadoLibre and Nubank as examples, mentioning that when both companies experienced a significant drop, investors became interested in buying their shares.

Looking ahead to 2024, Kazah predicts that many companies that received funding but failed to capitalize on it due to lengthy projects will face challenges in the coming year. However, he also assured that things are gradually moving in the right direction.

In April, Kaszek Venture Capital announced a new $1 billion fund.

How does it impact venture capital?

• The improved conditions for startups and investors by 2024 could lead to increased venture capital activity, with more funding being allocated to promising ventures.
• The positive outlook for startups could attract more venture capital firms to invest in the ecosystem, fostering competition and providing additional funding opportunities.
• The anticipated improvement in the startup landscape may encourage venture capitalists to take on higher-risk investments, seeking potentially higher returns in a more favorable market environment.

How does it impact startups?

• The expected improvement for startups in 2024 can create a more conducive environment for growth, providing increased access to funding and investment opportunities.
• Startups may experience enhanced investor confidence, leading to higher valuations and increased interest from venture capital firms and other investors.
• The positive outlook for startups can drive innovation and entrepreneurial activity, attracting talented founders and enabling the development of disruptive technologies and business models.

For detailed information, visit: Bloomberg Línea