INTRODUCTION Contributed by: Carsten Berrar, Florian Späth and Heiko Blaut, Sullivan & Cromwell LLP
making is anticipated to rebound to a certain extent in 2025 and beyond. Investors are hopeful that macroeconomic and monetary policy conditions will provide for a suf - ficient degree of certainty, permitting a deploy - ment of dry powder and an exploitation of back - logged opportunities due to a lack of activity since 2023. On the other hand, pressures to find exit opportunities exist, as LPs are yet to realise capital inflows often perceived as overdue and the number of exit candidates with significant valuations has been growing. VC investments in AI, in particular, can be expect - ed to further outpace investment in all other sec - tors – even though the focus may broaden into a wider range of sub-sectors including industry solutions and AI-enabled robotics. While the development of crypto, fintech or cleantech are highly contingent upon broader macro trends, industries such as defence tech and cybersecu - rity will likely continue to attract interest from VC investors against the background of geopolitical tensions.
Market observers believe that there will not be a return to the heady days of 2021, as start-ups and investors act with more discipline going forward. Nonetheless, growth companies and the VC industry will most likely be key drivers behind many of the breakthroughs and innova - tions of the 21st century and a shaping force for the long-term fate of the global economy.
16
CHAMBERS.COM
Powered by FlippingBook