2023 wasn’t exactly a banner year for startups – in Miami or elsewhere. While US startups raised $370B in 2021 and $248B in 2022, they only raised about $149B in 2023, according to Dealroom data. Refresh Miami’s ecosystem data paints a similar picture, with startups receiving about the same amount of funding in 2023 as in 2020, but a 66% drop from 2022’s highs.
So what exactly does 2024 have to hold for #MiamiTech? We caught up with some South Florida VCs to get their perspective.
Ushering in ‘24 on an optimistic note
It has been almost exactly a year since Boatsetter co-founder Jaclyn Baumgarten stepped down from her role as the company’s CEO to invest full-time as a managing partner at IDC Ventures. The global VC firm, which has its US base in Coconut Grove, invests in early-stage fintech and marketplace startups.
Baumgarten has a cautiously optimistic perspective on what this year has to hold. “I’m feeling so much more positive than last year,” she told Refresh Miami.
“We’re starting to see some really healthy signals that the ecosystem is starting to rebound.” This can already be seen in 4Q23 investment data, plus the rise of several new billion-dollar funds such as from Coatue and a16z.
On the startup side, Baumgarten noted external factors that will enable companies to move faster and more efficiently. Top of the list: access to global talent. “Particularly at the Seed and Series A stage, it’s dropping the barriers to entry for new companies that are growing and establishing themselves.”
“It allows for more interconnection and a transformative business environment,” she added, underscoring the transformative potential stemming from the fact that startups no longer have to be based within walking distance of Sand Hill Road.
The rise of artificial intelligence-powered tools for speeding up software development tasks can be a boon for startups, in Baumgarten’s view. “This is a major tailwind because it allows startups to do more with less, in addition to a reduction in computing costs and associated energy usage.”
Baumgarten also expects valuations of AI startups, which spiked in 2023, to normalize in the coming year.
NYC Journals 