Teknovations Series: Investor Outlook 1
Many predicted at least a mild recession in 2023, but it did not occur. What does your crystal ball say for 2024?
Teknovations asked this question of six investors within the region, including our very own Eric Dobson. Here’s what he had to say:
“2023 was the year of the recession that never was. Amongst all the geopolitical instability and financial upheaval, it was an unprecedented year. We invested more in 2023 than 2022, which was surprising as capital became scarce in the market by Q3. Many private equity pundits are saying 2024 will see a tough Q1 followed by a recovery in Q2. However, two things will mitigate that recovery in my opinion. First, the SSBCI (State Small Business Credit Initiative) money has begun to hit the streets and requiring a 1:1 private match. That should have the effect of sparking the market early in 2024 as selected entrepreneurs fully engage the investment community. Second, it is an election year, and, typically, the entire private equity market slows dramatically during the last three months of an election cycle waiting to see which regime is installed. Regardless of who is installed, the market goes back to work immediately after election day, which is, unfortunately, November and the end of the private equity investing year. So, my advice to those raising capital is do it in the first six months of 2024. There is likely a very narrow window in 2024.”
Read the rest of the article and responses on Teknovations.Biz.