The article discusses predictions from several venture capital experts about the trends and surprises that may happen in 2025 in the world of startups and venture capital. Here are some key takeaways:
Predictions:
- Mergers and closures: Several big-name unicorns may merge or close due to lack of growth and cash.
- Increased focus on AI: Venture dollars will shift towards hard technology, such as bio, tech, and hardware, as software becomes commoditized due to generative AI.
- Seed funding and exits: More companies will raise only seed rounds and achieve sub-$100 million exits in under three years of existence.
- Decreased consumer applications investment: The trend of investors backing enterprise SaaS companies over consumer applications may reverse with the rise of AI-created consumer applications.
- Climate-related disaster or economic shock: A significant climate-related disaster, geopolitical conflict, or economic shock could fundamentally reshape the startup and VC landscape.
Unexpected events:
- OpenAI conversion to for-profit entity: Something unexpected is that OpenAI could convert to a for-profit entity just for Microsoft to acquire it in the largest acquisition ever.
- Surge in venture dollars for hard technology: Venture dollars will surge towards hard technology, such as bio, tech, and hardware, as software becomes commoditized due to generative AI.
End of the "spray-and-pray" approach: The experts predict that investors will prioritize paths to profitability and sustainable business models, which will continue to be the hallmark of attractive opportunities.
