10 Predictions for 2025
Venture Capital, Startups, Data & AI
👋 Hi, I’m Andre and welcome to my newsletter Data-Driven VC which is all about becoming a better investor with Data & AI. Join 30,915 thought leaders from VCs like a16z, Accel, Index, Sequoia, and more to understand how startup investing becomes more data-driven, why it matters, and what it means for you.
Brought to you by Affinity — Deal Sourcing Strategies for 2025
At a time when 42% of VCs cite increased competition as a key challenge, how do you ensure your firm stays ahead? Sourcing the highest quality deals as early as possible is key. Affinity's new deal sourcing guide offers practical insights from industry leaders at Kleiner Perkins, Intel Capital, and more.
Reviewing my 2024 predictions⏮️
I split my annual predictions into 50/50 into general VC industry predictions and AI & data in VC predictions. Before we dive into the 2025 outlook, let’s look at the scorecard for last year’s predictions. Here’s the quick review:
#1 Natural selection: VCs cut headcount, close shop & pursue M&A😵🤝
Right, many VCs failed to raise their next vintage and/or closed
#2 Exit window will open end 2024 / early 2025📈
End 2024 = wrong. Early 2025 too early to tell.
#3 Boutiques, Mega funds, barbells, and the VOID🏋️
Too early to tell
#4 “Preferred” access to deals becomes key🕵️♂️
Right, competition for the top 1% deals continues to become more and more competitive, and investors increasingly more creative
#5 2024 will be the year of pre-emptions🏃♂️
Right, most pre-emptions we’ve ever seen
#6 Massive disruption through data & AI🤖
Right, data & AI in VC starts to become mainstream. More data on this in the upcoming DDVC Landscape 2025
#7 Build: Relative share of internal (data) engineers increases👩🏽💻
Right, at least according to preliminary DDVC Landscape 2025 data, the number of engineers continues to grow, whereas the number of investors remains unchanged
#8 Buy: “Investment Tech” on the rise⚒️
Right, I’ve never seen so many new cool tools for VCs within one year
#9 Fewer investors get more done💪🏼
Too early to tell
#10 Reputation & brand become key🏆
Too early to tell, but many VCs invested heavily into firm brand and personal brand initiatives. Rebrandings from Redpoint, GC, Seedcamp, Cherry, and many more
👉 In Summary, 60% right, 5% wrong, 35% too early to tell. Not bad 2024, not bad
My 2025 predictions🔮
As for last year, I’ll split my predictions 50/50 into general VC and AI & Data in VC. Let’s dive in.