Fears of a possible recession have some investors considering options to weather the storm in 2020. Recession resistant industries and fundamentals will likely see increased attention from investors. Even still, there is reason for optimism. PitchBook's 2020 forecasts recently provided some of those reasons (at least for everyone except SoftBank). Key outlooks are:
- The median pre-money valuation for seed-stage companies will eclipse $8.5 million.
- 2020 will mark a new annual record for US mega-deals.
- CVC activity will reach a new record in 2020.
- The median US VC fund size will top $110 million, reaching an all-time high.
- SoftBankâs second Vision Fund will not close at its target of $108.0 billion.
- At least three direct listings of VC-backed companies valued over $1 billion will close in 2020.
Forecasting the primary trends that will shape VC in the years to come.