Based on the article, here are some key takeaways and predictions from venture capital experts:
Predictions for 2025:
- Mergers or closures of big-name unicorns: Abigail Stevenson, a venture expert, predicts that some well-known unicorns may face consolidation or closure due to lack of growth.
- Shift in investor attention: With the rise of AI, investors will focus more on hard technology (bio, tech, hardware, etc.) and less on software.
- Increased seed rounds with sub-$100M exits: Venture experts predict that companies raising only a seed round can achieve significant exits within three years.
- AI reasoning model "thinks" in Chinese sometimes: OpenAI’s AI reasoning model is experiencing some unexpected behaviors, including thinking in Chinese language.
Changes in investor behavior:
- End of spray-and-pray investment approach: Venture experts predict that investors will focus more on meaningful value-add and sustainable business models.
- Increased diligence and selectivity: Investors will prioritize paths to profitability over growth at all costs.
Trends to watch:
- AI creates new opportunities for consumer tech: With the rise of AI, consumer applications will become more prevalent, reversing the trend of recent years where enterprise SaaS companies received more investment.
- Generative AI commoditizes software: As generative AI advances, software will become increasingly commoditized, leading to a surge in venture dollars focused on hard technology.
Overall, the experts predict significant changes in investor behavior, increased focus on sustainable business models, and shifting attention towards hard technology and consumer applications enabled by AI.
