What will this year bring in VC? We asked a few investors

Investors predict changes in VC; AI and IPOs will dominate 2025.

: Venture capitalists predict increased investments in private markets and AI as major trends for 2025. IPOs are expected to reopen, bringing liquidity gains. Challenges include AI startups facing growth hurdles and M&A activity delays. Unexpected shifts may involve OpenAI's potential acquisition by Microsoft.

Venture capitalists like Nekeshia Woods, Gabby Cazeau, Triin Linamagi, Michael Basch, and Austin Clements share predictions for 2025, highlighting an anticipated rise in investments towards AI and private markets, driven by investors seeking significant returns. The IPO market is also expected to reopen, offering much-needed liquidity, while early-stage funding is projected to increase, though some AI startups may struggle to scale beyond the experimental phase due to growth challenges.

Trends anticipated to continue include the use of AI tools in small teams and increased investment in reskilling platforms. The emphasis on profitability and sustainable business models is set to replace the erstwhile ‘growth-at-all-costs’ mindset. Developments such as the possible resurgence of consumer tech, which has been overshadowed by enterprise SaaS investments, reflect the changing focus.

Notably, unexpected events could stir significant changes, such as shifts towards hard technology due to AI commoditization and a possible legendary acquisition involving OpenAI and Microsoft. Other potential disruptions include climate-related disasters affecting the VC landscape, outlining the uncertain yet opportunity-laden terrain for startups and venture capital.

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