2025 has proven to be a year of significant shifts — economically, politically, and technologically. For founders, investors, and institutions alike, navigating volatility has become a core skill, not just a reactionary necessity. In this article, we explore the key factors driving today’s market uncertainty, and how forward-thinking investment strategies can transform volatility into opportunity.

The Drivers of 2025 Volatility

A number of macroeconomic and geopolitical events have converged to create an unstable market environment:

• Interest Rate Fluctuations: As central banks respond to lingering inflation, we’ve seen alternating cycles of rate hikes and pauses, creating unpredictability in capital markets.

• Geopolitical Tensions: Ongoing friction in Asia-Pacific and supply chain instability have introduced risk and hesitation into global investment flows.

• Tech Acceleration & Regulation: The AI boom, coupled with fragmented global regulation, has created a mix of hypergrowth opportunities and compliance landmines.

These conditions have cooled IPO activity, reshaped investor priorities, and increased scrutiny in both private and public markets.

What This Means for Founders

For founders, especially those raising capital, the bar is higher. Investors are leaning toward companies with:

• Clear, validated business models

• Strong fundamentals (unit economics, burn control)

• Demonstrated traction, not just vision

Founders are shifting away from hypergrowth-at-any-cost and instead focusing on operational efficiency, profitability paths, and real-world product-market fit.

What This Means for Investors

For investors, 2025 is a year of discipline. At our firm, we’ve doubled down on key principles:

1. Capital Efficiency: We're backing companies that make more out of less — showing thoughtful resource allocation and resilience.

2. Sector Selection: We’re emphasizing markets that thrive in uncertainty — like infrastructure tech, healthcare, and cybersecurity.

3. Founder Readiness: We're looking for founders who view volatility as a proving ground, not a pause button.

This means more rigorous due diligence, stronger post-investment support, and closer alignment with long-term strategic goals.

Strategies That Work in Uncertain Times

We’ve found the following approaches effective both across our portfolio and in partnerships with other funds:

• Scenario Planning: Building multiple financial projections based on conservative, moderate, and aggressive scenarios.

• Bridge & Extension Rounds: Structuring funding that gives startups flexibility without over-dilution in tough fundraising climates.

• Co-Investor Collaboration: Partnering more closely with co-investors to bring not just capital, but operating leverage and strategic input.

Turning Uncertainty into Advantage

The truth is, some of the best investments are made in down markets — when valuations are rational, competition is lower, and only the most committed founders persevere.

What separates long-term winners is not just who raised the most or grew the fastest, but who stayed focused, adjusted intelligently, and executed with discipline.

At our firm, we view 2025 not as a year of setbacks — but as a test. One that rewards clarity, resilience, and conviction.