2024 has been a volatile year for adtech funding.

U.S.-focused adtech startups, once accustomed to snagging billions in venture capital annually, have raised nearly $360 million so far this year, putting it on track to be the industry’s slowest year in over a decade, per Crunchbase data. That slowdown is due to market saturation, heightened regulatory pressures, and economic uncertainties.

ADWEEK spoke with five VCs who continue to invest in adtech companies, despite these challenges, about what they are looking for and what they avoid.

Perhaps unsurprisingly, these investors are targeting opportunities in privacy-focused technologies and industry-specific areas such as connected TV.