The 2024 State of U.S. Early-Stage Venture & Startups report, published by AngelList, provides a comprehensive overview of the venture capital landscape, highlighting a year of stabilization after the downturn of 2023. While optimism remains measured, the industry found its footing in 2024, allowing investors and founders to recalibrate. The report identifies critical trends, including steady seed valuations, underperforming recent funds, and the continued dominance of AI-driven startups.

One of the standout findings is the resilience of seed-stage valuations. Unlike Series A and later-stage funding rounds, which saw steep declines, seed valuations remained robust, even rebounding to their 2022 peak. The median pre-money valuation for seed rounds reached $20 million, suggesting that early-stage capital remains highly competitive. This trend is partially driven by shifts in round definitions, where lower-priced rounds are increasingly categorized as pre-seed rather than seed.

AI continues to dominate early-stage investments, capturing nearly a third of all seed deals on AngelList. This level of saturation far exceeds previous market trends seen in fintech and crypto, reflecting both genuine technological advancements and opportunistic branding by startups looking to attract capital. However, the industry is also facing a valuation overhang, where inflated paper valuations from previous years are delaying liquidity for limited partners (LPs) and contributing to a sluggish fundraising environment.

Looking ahead to 2025, the venture market appears poised for modest recovery rather than further decline. With valuation corrections and market stabilization underway, investors may see increased activity, even if at a lower tenor. The shift from unrealized gains to actual fund distributions could define the next phase of venture capital, influencing fund strategies and startup formations in the years to come. While challenges remain, the current landscape presents an opportunity for recalibration and strategic investment in a more sustainable venture ecosystem.