Thats according to the aVC index, a new monitoring tool developed by London-basedAlbionVCand Google Cloud.
The respondents expect to invest 2.4bn (2.8bn) early-stage SaaSstartupsby the end of the year.
The projected recovery follows stagnant investment activity in Q2 2023.
Specifically, 25% of VCs chose not to issue new term sheets despite having sufficient capital available.
Overall, only 4% of all portfolio companies received externally-led term sheets.
But, in total, respondents reported that they expect more investor-friendly terms.
It’s free, every week, in your inbox.
Nevertheless, there is cause for optimism in the second half of the year.
The aVC index found that Q2 already showed an increase in the number of companies within investors active pipelines.
For Series A, in particular, the index was 57.1, pointing to higherfundingactivity in this stage.
The funding market now appears to have bifurcated.
Story byIoanna Lykiardopoulou
Ioanna is a writer at TNW.
With a background in the humanities, she has a soft spot for social impact-enabling technologies.
