North America contributed to a significant fall in fundraising in absolute terms, down from $21.3bn to $15.7bn year-over-year although proportionally, the decline was smaller than those in Europe and Asia Pacific.
Activity was supported by the Fed’s two interest rate cuts in November and December, 50 basis points in total, but the slower pace indicated for 2025 and the new Trump administration’s policy choices will have an impact.
However, there may also be renewed interest in VC deals in the crypto/blockchain space if anticipated supportive policies for these industries are realized. Added to this is the participation of venture capitalists in the president’s key roles.
Michael Patterson, Senior Associate, Research Insights at Preqin said that the attitudes of venture capital investors shifted in the fourth quarter of 2024.
“Our latest survey of investors from November 2024 shows they have not been this positive about allocating to venture capital since 2021, with almost one-third looking to increase their commitments over the coming year,” he said. “This, alongside venture capital deal activity in Q4 2024 trending up to a level not seen since the start of 2022, is a positive signal for venture in 2025.”
