The latest PitchBook survey finds that venture capital investors are making “strategic adjustments as they navigate geopolitical uncertainty and technological transition.”
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52% of VC investors are expecting major changes in the sector this year, up from 32% in late 2024, according to PitchBook’s H1 2025 VC Tech Survey.
The rise is driven by technologies such as automated underwriting and generative AI copilots. However, adoption hurdles remain, with nearly half of respondents citing unclear use cases, followed by skills shortages and high implementation costs. Regulatory concerns, meanwhile, have eased, falling from 55% to 39%.
Despite macroeconomic uncertainty, fintech remains one of the top sectors for growth capital, attracting 38% of allocations. Still, investor caution is rising. 34% are scrutinising deals more closely, 44% are pausing investments for clarity, and 25% are pulling back from international opportunities amid renewed trade tensions.
The broader fundraising outlook has cooled, with only 38% of respondents expecting a rise in VC funding this year, a decrease from 58% in H2 2024. Liquidity expectations are also more conservative, with fewer anticipating exit improvements.
As AI capabilities mature and geopolitical risks reshape capital flows, fintech startups are under growing pressure to deliver clear value and defensible AI strategies to stand out in a more selective market.
