Dear founders and investors,

As we stand on the brink of 2025, the world's technology, infrastructure, AI, Data, Cloud, Crypto, venture and everything else in tech are poised for a transformative year.

I am excited to share my predictions for 2025 — insights that I believe will guide us through the next wave of innovations as important as the internet and smartphones. Together, let’s explore the trends that will not only guide and influence our thinking and investment strategies but also inspire us to create a better world through entrepreneurship.

Here’s to a year filled with opportunity and growth!

Here are my predictions for 2025

(You can also read the full article of Race Capital's Technology and Venture Predictions for 2025 by clicking here)

The year 2025 will be like a perfect storm, with venture capital, AI, crypto, politics, IPOs, and M&A all converging.

AI
The population of AI developers is expected to grow from 2 million to 3 million by the end of 2025, surpassing the entire population of Silicon Valley. Funding will shift its focus from quantity to quality, with investors prioritizing startups that have proprietary access to data and demonstrate clear value propositions special industries like healthcare, biotech and energy. Imagine the creation of HealthGPT, BioGPT, NuclearGPT, LogisticsGPT, GovGPT and more.

In 2024, most of the funding went to huge growth round including Databricks ($10 billion), OpenAI ($6.6 billion), X.ai (combined $12 billion for Series B & C). I predict 2025 overall funding amount will stay the same compared to 2024 with increased number of AI-related deals, but less mega round.

There will also be a strong emphasise in funding towards physical intelligence, quantum computing, energy infrastructure and other software Infrastructure (picks and shovels).

Crypto
The resurgence of crypto will be driven by regulatory clarity, increased institutional adoption, and the establishment of a US Bitcoin Reserve by the end of 2025. The United States is currently the largest holder of Bitcoin, with approximately 207,189 bitcoins in its possession. This effort will be bolstered by this massive stockpile, which is now valued at over $20 billion at current prices. This decision is expected to drive up Bitcoin prices, prompting other governments around the world to follow suit.

DOGE
In 2025, the Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, is expected to attract 50% of new hires from Silicon Valley.

IPOs
In the fall of 2025, companies such as SpaceX, OpenAI, Stripe, SHEIN, Databricks, Canvas, Chime, Anduril, and Scale AI are anticipated to go public. This expectation will trigger a wave of secondary market activities in the first half of 2025.

M&A
With substantial free cash reserves — Meta ($44 billion), Apple ($109 billion), Alphabet ($64 billion), Microsoft ($74 billion), Amazon ($32B) and Nvidia ($27 billion)—these companies will ramp up their acquisition activities in AI, data, hardware, and energy sectors. They hope to face less pushback from the Federal Trade Commission. This revised version enhances readability while maintaining the original meaning and details.

(Source: Perplexity)

Last week a total of 0 startups raised $0M in funding!

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See you next year!

Edith
X, LinkedIn

Funding (300 miles radius from Silicon Valley)

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IPO & M&A (300 miles radius from Silicon Valley)  

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