Record Highs, Record Lows: Tracking the Shifting VC landscape
I’m a firm believer that, in business and in life, before looking at the road ahead it is essential to look in the rear-view mirror, assessing the relevant landscape of challenges and opportunities.
As we approach the time of year for predictions, resolutions and strategizing for the year ahead, for this edition of Venture Legal, let’s assess the challenges and opportunities VCs have encountered in 2025.
In this week’s feature story, I examine some key challenges including:
⭐The steep decline in fund manager cash, reflecting the ongoing LP liquidity crisis.
⭐Persistent down rounds that have been part of a necessary compromise to achieve liquidity.
⭐Billions of dollars sitting “trapped in startups.”
Opportunities were also abundant, including:
⭐The rise of solo-led funds, which accounted for more than half of emerging funds last year.
⭐Total merger value hitting its highest total since 2021.
⭐Enterprise AI becoming the fastest-growing software category in history – with LegalTech setting record highs.
➡️Read the full feature story here: Venture Capital in 2025 – Assessing Challenges and Strategic Opportunities
-
The Founder Paradox
Jason Shuman, General Partner at Primary Venture Partners, wrote that “It’s never been easier to start a company, and never harder to build a durable one.” That observation resonates strongly in today’s AI and legal tech startup ecosystem. Deals in the billions are becoming regular headlines. AI startup Thinking Machines Lab reportedly secured a $2…
-
How AI FOMO is Fueling VC Competition
When Tim Cook said more than a decade ago that competition makes everyone better, he probably did not imagine how relevant those words would be to the rise of artificial intelligence in venture capital. The Original Copy investment race has created an environment where speed and precision matter more than ever. Similar patterns are also…
-
The One-Person, Billion-Dollar VC Fund of the Future?
Just as Sam Altman, CEO of OpenAI, raised the possibility that artificial intelligence could enable the rise of a one-person billion-dollar company, I started to ask myself a related question. Could we eventually see a one-person billion-dollar VC fund? With artificial intelligence reshaping the way investment firms operate, that possibility no longer feels far-fetched. For…
