The landscape of venture funding has undergone a significant transformation in 2024, with startups shifting their strategies to meet evolving market demands. While rapid growth was once the ultimate goal for investors, the focus has now turned toward business sustainability and adaptability.

Alexander Kopylkov, a prominent investor with extensive experience in the venture capital space, reflects on this shift:
“Earlier, scalability was often the primary metric for evaluating startups. However, based on my data, startups that pursued aggressive growth without a solid foundation had a survival rate of just 20%. Eight out of ten failed to maintain momentum, primarily due to weak or poorly structured business models.”

Today’s investors are increasingly prioritizing startups capable of withstanding market fluctuations and addressing long-term risks. Projects that align with sustainable development goals, particularly those incorporating ESG principles (Environmental, Social, and Governance), are receiving heightened attention.

Kopylkov Alexander highlights the advantages of this approach:
“Startups that incorporate ESG principles into their operations consistently achieve stronger financial performance. Over a three-year analysis, I've found that such companies not only exceed their peers in profitability but also attract higher levels of investor confidence. This approach is no longer optional—it's a critical component of succeeding in the current economic environment.”

European startups exemplify this evolution, demonstrating a commitment to addressing environmental and social challenges through innovative solutions. Initiatives such as green energy technologies, waste reduction strategies, and inclusive practices are not only meeting societal expectations but also redefining standards in the venture capital ecosystem.