A look into capital markets in 2024

Gain insights from industry experts on the latest in capital markets and what’s to come in tech in Pacaso's recent webinar hosted by co-founder and former Zillow CEO Spencer Rascoff.Jane Dunlevie, Global Head of Internet Banking, and Danielle Freeman, Managing Director, Equity Capital Markets, from Goldman Sachs joined Pacaso co-founder, former Zillow CEO, and Goldman alum Spencer Rascoff. Together, they discussed the 2024 capital markets outlook, explore IPO windows, and analyze the current landscape of tech stocks. A few key takeaways included:

Cautious optimism: The tech industry is experiencing a mixed environment with some optimism for the future but still facing challenges such as layoffs and decreased venture capital investments. There's a significant focus on large-cap and mega-cap tech companies, which have seen considerable growth and valuation appreciation, contributing to the broader market optimism.
IPO forecasts: Despite the overall positive trajectory in equity markets, tech IPOs have been relatively low, with only 3 tech IPOs in 2023. However, there is anticipation for a higher number of IPOs in the first half of 2024. The highest valued tech companies in the world may still wait until 2025, best-in-class companies may be patient for the right time, despite being ready in 2024, they may wait for IPO.
Election year impacts: In the context of an election year, market sentiment and investment strategies are influenced by the anticipation of potential policy shifts and regulatory changes, particularly in sectors like tech where regulatory scrutiny has intensified. Despite historical patterns of market growth in election years, uncertainties surrounding regulatory landscapes and geopolitical events are key factors shaping investment decisions and IPO timing.
AI: The AI trend in tech is real but differs from past trends like desktop to mobile migration. Rather than seeing a proliferation of new AI startups, the market is witnessing existing tech giants integrating AI into their businesses. This trend is expected to continue, shaping the landscape of tech IPOs and investments.

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