The global startup ecosystem in 2025 is at a crossroads and since I focus on dynamic young companies, I’m always on the lookout for those with great stories to tell that can earn the support of VCs with deep pockets. But founders face a more measured environment these days. The number of active venture investors has dropped to 2017–2018 levels, and funding rounds are taking longer to close, often at more conservative valuations. As one investor put it, “Valuations are being scrutinized more rigorously, and the focus has moved beyond just high-growth numbers. Today, there is a marked shift toward sustainable growth and operational efficiency”.
AI: Still the Center of Gravity
AI continues to drive the train. From an M&A standpoint, look at the purchase of Johnny Ive’s io Products by Open AI, signaling an important move to integrate AI with hardware. On the Venture front, even in this slower, more deliberate period, AI startups captured more than half of global VC funding by the end of 2024. That said, investors are prioritizing companies with clear product-market fit, scalable technology, and real-world impact. Applied AI—solutions that address concrete industry problems—are especially attractive — delivering seamless experiences that we can integrate into our daily lives.
Hot Categories
I’m noticing several domains gaining traction –
Fintech: Fintech is poised for a resurgence. Companies like my longtime client Trust & Will are rolling out AI-powered features while a new wave of startups is deploying AI agents to streamline investment research and decision-making. The convergence of fintech and AI is creating new opportunities in areas like compliance, fraud detection, and personalized financial services.
Robotics: Now outpacing AI in some VC rankings, driven by manufacturing automation, labor shortages, and supply chain resilience
Cybersecurity: With digital threats on the rise, AI-driven security solutions are in demand
HealthTech & Digital Health: Accelerated by the pandemic, innovations in telemedicine, diagnostics, and personalized medicine are attracting funding
Climate Tech & Sustainability: With climate change on everyone’s lips, investors are increasingly drawn to startups addressing renewable energy, smart grids, and sustainable solutions
EdTech: AI-powered personalized learning and VR-based education platforms are reshaping the sector
PR Tips for Founders
In this particularly competitive period, as VCs have pared back, focusing on sustainability and operational excellence, it’s especially important that founders put their best foot forward. Here are a few tried and true tips:
- Know Your Story: Investors want to see strong leadership, operational efficiency, and a clear path to profitability so build your message as authentically and authoritatively as possible. This applies to every audience and every venue; not just press.
- Timing Is Key: Competition is fierce and expectations are high so make sure to prepare and tell your story when you can benefit most from the attention
- Choose Your Media Target: When you are ready to talk to the press, it doesn’t have to the WSJ to be valuable. Sometimes niche media can be more important, especially these days.
- Be Open: As you’re building your reputation, consider every request and nurture media relationships whenever possible.
For more PR tips, schedule a call!