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From AI Agents to Enterprise Budgets, 20 VCs Share Their Predictions on Enterprise Tech in 2025
As the new administration takes office and the US economy continues its growth trajectory, venture capitalists are optimistic about the future of enterprise technology. In this article, we’ll explore the predictions of 20 influential VCs from top firms like Salesforce Ventures, Insight Partners, and Ascend.
Predictions on M&A Activity
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Many VCs believe that with the change in administration, there will be a resurgence in mega M&A deals. Marell Evans, founder and general partner at Exceptional Capital, expects exits to “pick up slightly” next year, possibly seeing more acquisitions and IPOs. However, Andrew Ferguson from Databricks Ventures notes that regulatory oversight might impact the speed of these transactions.
New FTC Leadership and Acquisition-Friendly Environment
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Kirby Winfield, founding general partner at Ascend, anticipates new Federal Trade Commission (FTC) leadership to make hyperscalers more acquisition-friendly for tech and talent. This shift could attract strategic acquirers, especially in the AI and data analytics sectors.
Increased Focus on Technical Founders and Technology
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Andrew Ferguson also predicts that strategic M&A will focus on “amazing technical founders and technology” rather than scaled businesses from the ZIRP era (zero-interest-rate policy). He expects private equity or growth equity investors to consolidate these assets into broader platforms.
Growth in Enterprise Investments and Exits
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Paul Drews, managing partner at Salesforce Ventures, believes that government efforts to boost efficiency and reduce regulation will stimulate growth investments and exits. In a surprising twist, Insight Partners’ Mike Hayes predicts that enterprises will focus on strengthening their inorganic growth through acquisitions in 2025.
IPO Market Hesitation
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While some VCs predict increased M&A activity, others are less optimistic about the IPO market. Paul Drews notes that there is still a disconnect between private valuations and public market pricing, which might hinder the IPO process for some companies.
Key Takeaways from 20 VCs’ Predictions
– Increased focus on AI, data analytics, and technical founders
– Potential uptick in M&A activity due to regulatory changes and new FTC leadership
– Reduced regulatory hurdles encouraging strategic acquisitions
– Growth investments and exits driven by government initiatives
– Sluggish IPO market due to valuation differences
These predictions from leading VCs provide valuable insights into the enterprise technology landscape.
Source: techcrunch.com
