Executive Summary

2020 – 2021: The golden age

Fueled by low interest rates and a seemingly endless supply of venture capital, 2020 and 2021 were boom years for tech startups. Investors backed companies with exciting ideas and promising products, often prioritizing ‘growth at all costs’ business models over immediate profitability, which in many cases led to aggressive hiring strategies. As a result, this period saw valuations reaching record highs. 

2022: The perfect storm  

The euphoria of 2020-2021 gave way to a sobering reality in 2022, as rising interest rates forced investors to prioritize profitability over growth potential and rethink valuation metrics. Many Series A companies, burdened by high costs, struggled to meet expectations. Startups were forced to raise money at significantly lower valuations, resulting in a lack of confidence among investors and founders.

2023: Finding new footing

During 2023, the market was finding new footing as businesses adjusted their business models and focused on core. It also saw the emergence of generative AI and the market showed significant enthusiasm for future use cases of the new technology.

What does this mean for 2024? 

Recent signs of macroeconomic stability have ignited investor optimism, fostering a more predictable environment for the market. We have seen an increase in pipelines with promising new ventures. We anticipate a future marked by a more measured approach to growth, coupled with a resurgence in investor confidence.

Find out more from our experts about the key investment opportunities in Technology & Software for 2024 and beyond. Download the full publication below.


DC Advisory has prepared this material solely for informational purposes and neither this material nor any videos linked in this is material a research report. This material (including any videos linked in this material) does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of any offer to buy, or any recommendation with respect to, any securities. The views expressed in any videos linked in this material are based on the observations, experience, and belief of the speakers, as well as assumptions made by, and information available to, them at the time such statements were made. These views are statements of the personal opinion of the speaker, and not statement of fact. There can be no guarantee that anything said on any such video is correct, or that forward-looking statements will come to pass. Any such views are those of the individuals expressing them, and do not necessarily reflect the views of DC Advisory. DC Advisory may, in other circumstances and/or venues, take positions that are contrary to those proffered on any podcast, webinar or similar presentation or discussion.

For other important information, please read our Insights & publications disclaimer and our podcast & webinar disclaimer >