- Tariff uncertainty exerts greater pressure on the LCD market, Leaving investors who do not decide because technology companies postpone IPO. Global tariffs also cause a supply chain problem that can eventually “Dent VC APPETITE” for AI investment, Pitchbook reports.
Global Trump tariffs reduced the hopes for the return of venture capital in 2025 According to the new report with Pitchbook This replaced the previous optimistic forecast of the company for the next year.
Turbulence in the world capital markets has suffered VC because several major technological startups postponed their IPO plans in response to a sharp decline in technology estimates. Dishes are there exerting even greater pressure on the branch Already coping with the slowdown both in Tech IPO and in the M&A activities.
“When the latest tariffs are worth, we expect considerable pressure on funds and transactions in the near future, when investors are sitting in Baku and waiting for signs of market stabilization,” Pitchbook analysts said in the review of the first quarter of the enterprise market.
They noted that while in the first quarter of 2025 there were several positive developments, such as Coreweave, which completed IPO and Openai, providing $ 40 billion, these successes at the top have masked more complex reality on the market.
AI continued to dominate the financing of the VC, recording 71.1% of all venture capital in the first quarter of 2025 – an increase compared to 46.8% in 2024. This was primarily increased by large transactions in the sector, including the Openai Financing Round, two anthropic rounds of $ 4.5 billion, and an endless reality of $ 3 billion.
Killing IPO TIPERINE
The imbalance between demand and cash remained steeply, signing the tough climate for transactions. According to Data Pitchbook, only $ 10 billion was raised for $ 87, which created the basis for what could become the weakest fundraiser in ten years.
Meanwhile, Trump’s global tariffs have already begun to weigh largely on market moods – providing a few major IPOs and reinforcing the expectations that the current liquidity will be stored until the end of 2025.
‘The blockage of IPO Pipeline is perhaps Happiness.
“If you have an IPO and the list, it has some favorable effects on the venture ecosystem, you have liquidity for funds, investors and employees … And you see employees in these companies, if not liquidity, they may think about care and start something new. Then you can upgrade the cycle … All these things are gone.
Push pause according to IPO plans
Several high -profile companies have paused for their IPO plans against the background of growing uncertainty in the market. Buy now, pay later the giant Klarna and the STUBHUB ticket platform have been planned to the IPO in the coming months, but have since postponed these launches. Fintech Company Chime has Reportedly stuck And effectively postponed its IPO plans after steep market losses caused by new tariffs in the US.
“We don’t know what’s going on and we don’t know if we get liquidated,” said John Kedan, founder of Torch Capital Happiness. “It is will be an ugly problem. “
Kaydan added that technology companies may also be faced with a decrease in the product side when the economy enters a limited recession limited with low consumer mood conditions.
“As for AI, many of these fast-growing companies, especially at the enterprise, depend on these orders that go through and companies that grow and use their tools, as well as buy their subscription and so on. Thus, it begins to decrease or interfere, it will absolutely affect the market,” he said.
Keydan noted that while tariffs and clogging IPOs may put pressure on financing a later stage, the seed investments are heavily receiving a “free pass”.
“The task of those founders is to block the noise, forget macro -tendencies and think about how to develop technology and create a company to solve pain points … So amazingly, I say to your founders to ignore it all. Focus on what you do. Focus on what they need,” he said.
VC take the “expectation” approach
With tariffs that exert considerable pressure on fundraising and transactions, VC investors take an approach to “expectation and vision” amid global uncertainty policy, PitchBook analysts. Although the demand for II remains strong, new tariffs can violate chips supply chains that can eventually “Dent VC APPETITE” for AI investment, the report said.
According to A a AR New report from ReutersTariffs can only cost American semiconductor equipment more than $ 1 billion a year.
AI data centers may also face Previously told Wealth that pulsation effects can be far away. These facilities are heavily relying on a wide range of electronic and metal components, many of which are manufactured or going to now undergo new trade restrictions, including China.
“There, before making big purchases, there is a bit of expectation. So, we definitely see it because of the tariffs,” said Brian Satianatan, co-founder and cto itterate.ai, Happiness.
“In private markets there is a little slowdown … But I think ultimately, especially if you pass a 90-day mark, everything will start collecting much faster and there will be better clarity,” he added.
Originally this story was presented on Fortune.com
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2025-04-16 10:20:00
Beatrice Nolan
