We will continue to see liquidity problems. This is hardly surprising since some $ 4.1 billions of Dollars² is still linked in 55,000 companies in the American startup ecosystem. The new administration could inaugurate regulatory changes which open the door to a relaxed mergers and acquisitions environment, paving the way for more founders to return money to investors and start a capital flow in the ecosystem. This could also prepare the ground for more companies to make public.
Based on the momentum of the fourth quarter, we expect the venture capital market to continue to develop in 2025 and potentially exceed $ 200 billion next year. In a EY recent survey91% of overwhelming entrepreneurs said they were planning to collect funds over the next 18 to 24 months.
In this environment, companies that take advantage of AI in their value proposal will benefit from an inherent advantage. Those who will not need to repress themselves or consider alternatives. The founders must also think carefully because they consider the potential options of investors. Not all investors are the right match, and the founders should not rush into a situation that does not work. In addition, investors will be more likely to reward businesses with a more profitable business model. It’s a good time to be thin.