From Fortune:



Venture capital faces cyclical downturns every 7-10 years, but this time it’s been 15 years since the last downturn in 2009. However, the current environment is still exciting for venture capital investment, with generative AI driving new opportunities for both new and existing companies. Despite the challenging macro environment, there is record capital available for investment, though deployment into new deals has slowed.

There are three key trends to watch out for in the coming year: a potential AI bubble burst due to limited computing capacity, a shift towards nontraditional vocational education and apprenticeships, and the resurgence of San Francisco as a technological and cultural hub. Additionally, startups are beginning to prioritize a realistic path to profitability over unicorn status, as private valuations are facing scrutiny and risk.

Despite challenges, the venture capital environment remains full of potential with these emerging trends and shifts in focus.



Read more: She closed a $400 million fund the week Lehman crashed. Here’s what VC Rebecca Lynn predicts for the year ahead