As we enter 2024, the venture capital landscape is shifting in some interesting ways. Though VC funding hit record highs in 2021 and 2022, investors are becoming more selective with where they place their bets going forward. Here are some of the top VC investment trends to keep an eye on in 2024:

1. Continued focus on climate tech

Climate tech startups saw their VC funding triple since 2020, going from $12 billion to over $35 billion globally. This momentum will continue as VCs look to invest in innovative technologies tackling climate change across renewable energy, transportation, food systems, and more. More mainstream VCs are realizing climate tech represents a massive economic opportunity.

2. Quantum computing takes off

While still nascent, quantum computing is expected to see major leaps in adoption by 2024. As quantum hardware and software matures, VCs will be keen to fund startups pushing this space forward across areas like cybersecurity, AI, drug discovery, and finance. The recent passing of the U.S. Quantum Computing Cybersecurity Preparedness Act also signals where things are headed.

3. Space tech flies high

The renewed interest in space exploration from private companies like SpaceX has gotten VCs excited about the commercial opportunities involving satellites, rockets, imaging and communications tech, and more. Space tech funding could top $14 billion globally next year, as the sector moves from government-funded to privately-funded at warp speed.

4. AI focus expands

While AI is nothing new to VCs, its applications across sectors from small business marketing to drug discovery continue expanding dramatically. In 2024, look for VCs to fund startups using AI for vertical-specific applications vs. generalized AI platforms. Key areas to watch include health tech, smart cities, autonomous driving, and supply chain tech.

5. Future of work tech boosted

The pandemic sparked a massive and likely permanent remote and hybrid work shift. As employers navigate this new normal, VCs will fund startups helping to solve headaches around remote collaboration, hybrid meetings, decentralized teams, employee wellness and retention. Workplace management software, tools, and analytics will take center stage.

While the fast-changing world makes predicting the future difficult, these key trends give VCs and startups alike areas to focus on for funding and growth in 2024. The innovative companies able to leverage these trends will be well-positioned to attract investor attention in the coming year.