Future Outlook

The early stage ecosystem is displaying all qualities of a typical down cycle, including lower funding, smaller investment rounds, poor operating performance, and governance issues coming to light. On the positive side, the ongoing 'funding winter' is gradually receding, as evidenced by Q3FY24 numbers shared in this letter. If the global liquidity situation improves, accompanied by decreasing interest rates, and no significant geopolitical risks emerging, CY2024 promises to be a favourable year for early stage businesses. Our portfolio companies have demonstrated resilience in past years and are now showing improved metrics, extracting significant value from resources at their disposal. From this perspective, the future looks bright.