Mike’s Five Predictions for 2025
It’s About to Get Very Interesting
As we approach the midpoint of the decade, some of you have asked me the same question: “What do you think 2025 will bring for venture?” I’m excited to share my five predictions, which not only highlight the incredible opportunities ahead but also reaffirm AV’s commitment to creating value and seeking meaningful investments.
1. The Most Powerful Age of Technological Change Humans Have Ever Seen
We’re living in an era of unprecedented technological advancement — the most powerful in history. If you doubt the transformative shifts on the horizon, I encourage you to read Ray Kurzweil’s The Singularity Is Nearer. The data speak for themselves. At AV, we pride ourselves on anticipating changes before they become mainstream, and we’re well-positioned to ride this wave.
2. A Positive Landscape for Venture Capital and Markets
Politics aside, the future looks promising for venture capital and markets. We anticipate a landscape characterized by lower taxes, reduced regulation, and a generally pro-business environment. These trends should help foster entrepreneurial success. We believe this environment will also lead to more exits and liquidity, making ventures even more attractive.
3. More With Less: Efficiency Is the New Standard
In 2025, we’ll continue to see a shift towards smaller, more agile teams that achieve greater results with fewer resources. The era of large teams and bureaucratic hurdles is giving way to streamlined operations where innovation, technology, and efficiency drive success. This approach accelerates growth and fosters a culture of accountability and creativity, ensuring that every investment maximizes its potential.
4. Shadow Trends and Pushback
As we surge into this transformative era, we must remain mindful of the underlying challenges and potential resistance accompanying rapid innovation. Shadow trends — subtle, sometimes unnoticed counter-trends — can significantly impact the venture landscape. These include evolving regulatory environments, ethical considerations in emerging technologies, and societal concerns about privacy and security.
At AV, we proactively identify and address these shadow trends to mitigate risks and ensure sustainable growth for our portfolio companies. By staying ahead of regulatory changes and fostering dialogues about ethical practices, we help our startups navigate complex landscapes confidently. Furthermore, understanding and addressing societal concerns allows us to build trust and acceptance for groundbreaking technologies. Embracing this approach safeguards our investments and reinforces our commitment to responsible innovation.
5. No, It’s Not Too Late
I frequently hear the sentiment, “I’m too late again.” This reminds me of the saying, “The best time to plant a tree was 15 years ago—the second-best time is today.” The foundational work being done in AI, life sciences, and space is setting the stage for the next wave of innovators to build remarkable businesses. The startups we fund in 2025 hold enormous potential as pipelines for groundbreaking advancements.
To share our excitement, I’ve linked several AV Big Idea pieces that we published in the last 60 days. These pieces showcase a few areas of dynamic innovation. Take a look to see where the future is heading.
Further Reading
The Bespoke Economy: Redefining Innovation with Human-Centric Ventures
- Discover how the rise of human-centric ventures is reshaping the future — where tech meets authenticity. Dive into the Bespoke Economy and explore the trends driving meaningful innovation.
No Humans Needed: Welcome to the Era of Human-light Ventures
- Human-light ventures are transforming industries by leveraging AI and automation to reduce reliance on human labor. Alumni Ventures explores five sectors where this trend is reshaping business models.
The Agents: Came, Saw, and Conquered
- AI agents are reshaping industries, from sales and education to HR and travel, by automating tasks, personalizing experiences, and enhancing efficiency. Discover their potential to revolutionize the future.
- Just as railroads revolutionized the industrial age, data centers are driving the undeniably AI-age. The parallels between these transformative infrastructures offer crucial insights into the economic shifts ahead.
As we navigate this historic era, AV remains dedicated to providing value and building trust with each of you. There’s a place for you in our journey, whether you’re a Trophy Hunter seeking exceptional wins, a Tech Enthusiast wanting to learn about the latest advancements, an Asset Allocator looking to diversify, a Legacy Builder aiming to make a lasting impact, or Venture Curious wishing to explore new opportunities.
Thank you for your continued trust and partnership.
This communication is neither an offer to sell, nor a solicitation of an offer to purchase, any security. Offers are made only pursuant to the formal offering documents of the fund(s) concerned, which describe the risks (which are significant), terms, and important information that must be carefully considered before an investment is made. Nothing in this communication may be relied on as personalized advice of any nature; Alumni Ventures provides advice only to its affiliated funds.
This communication includes forward-looking statements, generally consisting of any statement pertaining to any issue other than historical fact, including without limitation predictions, financial projections, the anticipated results of the execution of any plan or strategy, the expectation or belief of the speaker, or other events or circumstances to exist in the future. Forward looking statements are not representations of actual fact, depend on certain assumptions that may not be realized, and are not guaranteed to occur. Any forward-looking statements included in this communication speak only as of the date of the communication. AV and its affiliates disclaim any obligation to update, amend, or alter such forward-looking statements whether due to subsequent events, new information, or otherwise.