The Venture Capital market is undergoing significant changes that are expected to shape the direction of investments in the coming years. Among the highlights are changes in the sizes of checks in early rounds, the focus on sustainable growth and the leadership of the energy sector as a new frontier of opportunities. Richard Zeiger, partner at MSW Capital, share three fundamental beliefs about these trends and how they will impact the sector
Smaller checks in the seed stage
The massive introduction of artificial intelligence tools has allowed entrepreneurs to do more with less. According to Richard, checks in seed rounds are decreasing, as technology reduces the need for large teams to develop solutions. This scenario reinforces the trend of resource efficiency from the early stages
Sustainable growth as a priority
The focus of the founders is shifting from rapid growth to the pursuit of profitability and financial autonomy. "Businesses that reach break-even with less reliance on external capital become more attractive to investors", affirms Richard. Sustainability, allied to the control of the burn rate, has become a central metric for the market
Energy as a prominent sector
The energy sector is seen as the next big bet for the next two to three years. Areas such as energy storage, renewable, green hydrogen, sustainable aviation fuels (SAF), distributed generation and mobility electrification promise to attract a large volume of investments. Richard comments: "The energy market is undergoing transformation, and we will see many innovative solutions winning over investors
