Record high levels of undeployed capital, demand for exits seen to drive continued momentum for venture capital deals

DEALS in the venture capital (VC) space are expected to continue to gain momentum in 2025, driven by record high levels of undeployed capital, demand for exits by limited partners, tempered valuation expectations, and dwindling cash runways for portfolio companies.

Ang Lip Kian, a principal at the mergers and acquisitions (M&A) and private equity practice at law firm Baker McKenzie Wong & Leow in Singapore, noted that there has been an increase in fund investment as well as exit discussions heading into the end of 2024.

“The momentum appears to have carried over into the first quarter of 2025 despite the ongoing macroeconomic and geopolitical uncertainty,” he said.