After a painful year, venture capitalists are feeling upbeat about fundraising in 2024. But they are less confident about the exit options available to their portfolio companies next year.

Strong deal volume and valuations led to stratospheric fundraising in recent years. In 2021, 1,397 U.S.-based venture funds raised $157.8 billion and in 2022, 1,057 funds brought in $168.3 billion (more than twice the number of funds and more than four times the capital raised 10 years ago), according to PitchBook. Those totals dramatically slumped this year under the pressure of higher interest rates and a slower economy. Halfway through 2023, just 197 funds raised $27.6 billion. The biggest venture capital funds are having an especially tough time raising capital and investing it. READ MORE