PitchBook News - Our full 2025 outlooks

Our outlook for venture in 2025 is positive, albeit tempered. Capital availability will likely remain lower for the later stages, a mechanic of the overinvestment a few years ago, and valuation growth should start to increase mildly.

The need for liquidity should finally push some companies to the table for acquisitions, and we can't forget there are 750 unicorns, not all of which will be able to raise more capital to provide liquidity for early investors and employees the way that Databricks and SpaceX could.

Distributions should also start to come back with the larger exits occurring, and that should also enhance the fundraising market, marginally.

The optimism inherent to venture allows for optimistic views no matter the true state of the market. However, it's inarguable that VC has gone through a dramatic change in the past three years, from anomalous years of highs to a swift contraction and now a relative normalization.

2025 will be a pivotal year, and there will likely be more shakeout in the market, but the sun seems to be rising.

To read our 7 predictions for next year, download our free 2025 US Venture Capital Outlook.