Startups attracted $91.5 billion in venture capital funding in Q1, marking the second-highest quarterly investment in the last decade.
However, the outlook for 2025 appears to be bleak due to shattered expectations of significant exits and a potential recession, which has derailed IPO plans.
Stock market volatility and fears of a recession triggered by President Trump’s tariff policy have impacted the plans of startups to debut on public markets.
Despite strong Q1 dealmaking totals, the challenges faced by many founders are being masked, and startups are anticipated to face difficulties and potential shutdowns in 2025.