The Venture Capital market is undergoing significant changes that should shape the direction of investments in the coming years. Among the highlights are changes in check sizes in early rounds, the focus on sustainable growth and the role of the energy sector as a new frontier of opportunities. Richard Zeiger, partner at MSW Capital, shares three fundamental beliefs about these trends and how they will impact the sector.
Minor checks at 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 accelerated growth to the pursuit of profitability and financial autonomy. “Businesses that reach break-even with less dependence on external capital become more attractive to” investors, says Richard.Sustainability, combined with burn rate control, has become a central metric for the market.
Energy as a prominent sector
The energy segment is seen as the next big bet for the next two to three years. Areas such as energy storage, renewables, green hydrogen, sustainable aviation fuels (SAF), distributed generation and mobility electrification promise to attract large volume of investments. Richard comments: “The energy market is in transformation, and we will see many innovative solutions win over” investors.
