Here are some key takeaways from the article:
Predictions for 2025
- More consolidation and closures of big-name unicorns that have not grown enough to sustain themselves
- A significant climate-related disaster, geopolitical conflict, or economic shock could fundamentally reshape the startup and VC landscape
- Venture dollars will increasingly focus on hard technology, such as bio, tech, hardware, and other forms of deep tech
- There may be a surge in venture dollars looking at companies with distribution quickly acquiring top products to complement their existing offerings
Trends that are expected to continue or end
- The perceived short list of winners in the AI space will continue to command significant investor attention at premium valuations
- The trend of VC-backed companies shuttering as capital markets become more selective in terms of funding
- The continued trend of VCs, especially seed stage, being unable to raise new funds due to rough performing 2020 or 2021 vintages
- The end of the growth-at-all-costs mentality and a shift towards prioritizing paths to profitability and sustainable business models
Something unexpected
- OpenAI could convert to a for-profit entity just so Microsoft can acquire it in the largest acquisition ever.
