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December 18, 2023

What’s In Store For 2024: 9 Norwest Investors Share Their Industry Outlooks

Ineffective celebrity endorsements. AI music concerts. Innovations in pain management and biologics. Casual joggers in the office?

Investors across our consumer, enterprise tech, and healthcare teams shared their industry outlooks for 2024. What shifts might we see unfold in the new year? Here’s what they anticipate.


Celebrity endorsements will lose influence on increasingly skeptical consumers

Sonya Brown, General Partner, Growth Equity

“Celebrity endorsements alone will no longer win consumers’ beauty and skincare dollars in 2024 – products will need to be backed up by proof. In a sea of content, consumers will seek out facts, experts, and verifiable claims to make buying decisions. Brands and services that focus their GTM strategies on licensed experts and their products’ clinical proof will come out on top.”

Read more from Sonya on the trends behind the growth of clinical beauty and skincare.


Versatile clothing will further blur the lines between office and home wear

Jon Kossow, Managing General Partner, Growth Equity

“As employees straddle hybrid work environments, so too will their wardrobes. In 2024, we’ll say goodbye to “work clothes” and see a shift to more casual, comfortable, and versatile attire which will remove one barrier for people returning to the office.”

Read more about our partnership with Vuori, as told by Founder and CEO Joe Kudla and Jon Kossow, Norwest Managing Partner and Vuori Board Member.


Science-backed products will help revive the consumer vertical

Lisa Wu, Partner, Consumer

“Science-backed health and wellness products will help revive the consumer vertical. Health-conscious consumers are seeking voices of authority and efficacious products supported by scientific evidence. This will create new opportunities for doctors-turned-founders whose deep expertise and knowledge-sharing have earned them devoted audiences in the creator economy. The trust they have built with their communities will translate into cost-effective customer acquisition, strong customer lifetime value and strategic product development opportunities that culminate in robust, efficient businesses.”

Watch a fireside chat between Lisa Wu and Ritual founder and CEO Katerina Markov Schneider where they discuss how the traceability-focused multivitamin brand became a category leader.


AI-generated music artists will go on tour

Scott Beechuk, Partner, Enterprise

“In 2024, we will see AI-generated music artists and performers go on tour, interact with their fans, and hold press conferences. Concerts will begin in small formats and grow to stadium-level venues. Fans will follow the AI artists and promote their music via social media and entire brands will be created based on AI solo artists and bands.”

Read Scott’s article in Fast Company on how generative AI can unlock musical innovation.


Enterprise vendors with an AI-oriented framework will win out

Dave Zilberman, General Partner, Enterprise

“Enterprise infrastructure vendors that employ an AI-oriented framework, particularly accounting for security, privacy, and operational cost will be best positioned to maintain and expand their customer base. Enterprise customers will prioritize vendors that adhere to enterprise operational best practices.”

Read more from Dave on everything it takes to build a successful open-source software company.


Companies innovating on legacy software will be more competitive

Sean Jacobsohn, Partner, Enterprise

“The generative AI boom has forced every department to scrutinize their technology investments, particularly in areas like finance and supply chain. At a time when every dollar counts, budgets for inefficient, outdated technology are on the line. Companies innovating to replace or consolidate clunky legacy software will be more competitive in the 2024 market than those creating a new category.”

Read more about Sean and his partnership with Spiff, and watch him talk about the opportunities for next-gen SaaS companies.


Biologics will become more accessible and start to push out small molecules

Tiba Aynechi, General Partner, Healthcare

“Biologics have shown tremendous promise in improving patient outcomes by offering more targeted treatments with fewer side effects and drug interactions—but delivery, high production costs, and storage requirements continue to pose barriers to entry. With new platform technologies, better supply chain optimization, and more favorable pricing environment compared to small molecules due to the IRA, drug innovation could shift further towards biologics versus small molecules.”

Learn more about Tiba and the investors who’ve brought more expertise in life sciences to our healthcare team.


Neuromodulation will be the answer to scaling pain-management therapies

Zack Scott, General Partner, Healthcare

“As the market looks to scale alternative pain-management therapies, investment in neuromodulation will continue its upward trajectory. Chronic pain conditions are only going to increase with aging populations, and the opioid crisis has reinforced the need to scale more sustainable ways to manage this endemic problem. This area will expand and evolve with the growing total addressable market.”

Read more about Zack’s perspective on addressing poor healthcare workflows and his recent investments in SetPoint Medical, Vertos Medical and Cytovale.


Gen AI will hit Main Street in a big way

Edward Yip, Partner, Consumer

“Generative AI will hit Main Street in a big way. More small and midsize businesses will use it to create websites and content, automate marketing and operations, and streamline customer support – which will drastically drive down their cost curves and increase profit margins.”

Read more on how startups can navigate the promises and perils of generative AI.


Read our reflections on 2023, a year defined by community.